House of Reps approves Tinubu’s $2.35bn external loan request
The Nigerian House of Representatives has approved President Bola Tinubu’s request to secure a total of $2.347bn loan from the international capital market to partly finance the 2025 budget deficit and refinance maturing Eurobonds.
The legislative body also granted the President’s request to issue the Country’s first-ever Sovereign Sukuk of up to $500 million in the International Capital Market (ICM) to fund infrastructure projects and diversify Nigeria’s financing sources.
The approval was sequel to the consideration and adoption of a report by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during Wednesday’s plenary presided over by Speaker Tajudeen Abbas.
According to the report, the new external borrowing will comprise $1.23 billion to fund the 2025 budget deficit and $1.12 billion to refinance Nigeria’s Eurobond maturing in November 2025.
The Committee’s recommendations, as adopted by the House, authorize the Federal Government to implement the external borrowing component of the 2025 Appropriation Act amounting to N1.84 trillion (about $1.23 billion) at the budget exchange rate of N1,500 to a dollar.
Tinubu had earlier requested the approval, stating that the external borrowing was backed by provisions of sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new loans and refinancing arrangements.
The President had said that the funds would be raised through one or a combination of instruments such as Eurobonds, loan syndications, or bridge financing facilities, depending on prevailing market conditions.
TheGuardian and Horse’s Mouth News
