The House of Representatives on Wednesday approved President Bola Ahmed Tinubu’s request to raise a total of $2.347 billion from the international capital market to part-finance the 2025 budget deficit and refinance maturing Eurobonds.

The approval followed the consideration and adoption of a report by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during plenary.

The plenary session was presided over by Speaker Tajudeen Abbas.

According to the report presented by Nalaraba, 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.

The House also granted approval for the Federal Government to access the funds through Eurobond issuance, loan syndication, bridge finance facilities, or direct borrowing from international financial institutions.

The lawmakers also endorsed the President’s proposal to issue Nigeria’s first-ever Sovereign Sukuk of up to $500 million in the international capital market, with or without a credit guarantee.

President Tinubu had earlier explained in his letter to the National Assembly that the borrowing plan was necessary to bridge the gap between projected revenue and planned expenditure for the 2025 fiscal year, and to ensure the government meets its obligations when existing debts mature.