The National Assembly yesterday approved President Bola Tinubu’s request to implement the new external borrowing plan contained in the 2025 Appropriation Act.
The borrowing plan included external borrowings of up to $2.347 billion. The net proceeds of the issuances would be used partly to refinance maturing Eurobonds.
Also, both the Senate and House of Representatives approved a debut sovereign Sukuk of some $500 million for the international capital market. The maiden external Sukuk would be used to fund infrastructural projects.
The resolutions of the Upper and Lower Chambers followed the adoption of various reports by their committees. The Senate approval was sequel to adoption of the report of its Committee on Local and Foreign Debts, presented by its Chairman, Senator Aliyu Wamakko.
The House of Representatives approved the report of its Committee on Loans and Debt as presented in plenary by the committee’s chairman, Hassan Nalaraba.
The request was first read on the floor of the Senate on October 8, 2025 seeking for new external borrowing and debt.
Commenting on the report, Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa urged his colleagues to support the approval as it has been captured in the fiscal document of the federal government.
“It is very needful that we give approval to this request so that the 2025 appropriation will be given the necessary funding,” Musa said.
Chairman of the Senate Committee on Banking, Adetokunbo Abiru, said there’s nothing new in the request other than to ensure compliance with the revenue framework.
“This is more of a compliance issue because the 2025 Appropriation Act as it is has already captured it as part of the deficit financing.
“The second request is a refinancing to ensure that the country doesn’t default in the Eurobond servicing,” Abiru said.
