Reps Approve President Tinubu’s Request to Borrow $2.35 Billion and Issue $500 Million Sovereign Sukuk

The House of Representatives has officially given approval to President Bola Ahmed Tinubu’s request to borrow a total sum of $2.35 billion to help finance part of Nigeria’s 2025 budget deficit. The decision marks a significant step in the government’s efforts to bridge the nation’s fiscal gaps and sustain critical developmental projects in the coming year.

In addition to this, the House also approved the President’s plan to issue a $500 million debut sovereign sukuk in the international capital market. This initiative aims to support key infrastructure projects across Nigeria while diversifying the country’s financing sources.

According to legislative reports, the $2.35 billion loan will be obtained through concessional facilities that offer favorable repayment conditions and low-interest rates. The borrowed funds are expected to be directed toward vital sectors such as transportation, power, agriculture, and education, aligning with the administration’s Renewed Hope Agenda.

The $500 million sovereign sukuk—a non-interest Islamic bond—will provide an alternative financing option to traditional loans, helping Nigeria to attract investors from Middle Eastern and Asian financial markets. This marks Nigeria’s first sovereign sukuk issuance in the international market, further demonstrating the government’s strategic move to diversify its funding sources.

Lawmakers emphasized the importance of transparency, accountability, and proper utilization of the borrowed funds. They noted that with effective management, the loan and sukuk proceeds could accelerate economic growth, enhance infrastructural development, and promote investor confidence in the Nigerian economy.

Financial experts have, however, cautioned that while borrowing may be necessary to fund budget deficits, it is important to ensure that the loans are invested in productive sectors capable of generating sufficient revenue to repay the debts without burdening future generations.

The federal government continues to assure Nigerians that all borrowings are within the limits prescribed by the Fiscal Responsibility Act, and that such funds are being carefully managed to drive economic stability and long-term development.

The approval by the House of Representatives reflects growing confidence in President Tinubu’s fiscal and economic policies, particularly those targeted at achieving macroeconomic balance, expanding infrastructure, and stimulating private-sector investment.

For Nigeria, the decision represents both an opportunity and a challenge—an opportunity to strengthen the economy through smart borrowing and infrastructure development, and a challenge to ensure that every dollar borrowed delivers measurable results for citizens.