The House of Representatives has permitted President Bola Tinubu’s request to borrow $2.347 billion from the worldwide capital market to part-finance Nigeria’s 2025 funds deficit and refinance maturing Eurobonds.
The approval was granted on Wednesday, October 29, after the adoption of a report by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, throughout a plenary session presided over by Speaker Tajudeen Abbas.
According to the report, “The new borrowing plan comprises $1.23 billion to fund the 2025 budget deficit and $1.12 billion to refinance Nigeria’s Eurobond maturing in November 2025.”
The Deputy Speaker, Benjamin Kalu, who chaired the Committee on Supply throughout the consideration of the report, introduced the committee’s suggestions to the House
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“The Committee on Supply considered the request of Mr President and made these recommendations. Do we accept these recommendations,” Kalu requested, to which lawmakers responded within the affirmative.
With the approval, the Federal Government is authorised to implement the exterior borrowing part of the 2025 Appropriation Act amounting to ₦1.84 trillion (about $1.23 billion) on the funds alternate charge of ₦1,500 to $1.
The House additionally permitted the federal government to boost funds by means of Eurobond issuance, mortgage syndication, bridge financing, or direct borrowing from worldwide {financial} establishments.
In addition, lawmakers endorsed President Tinubu’s plan to problem Nigeria’s first-ever $500 million Sovereign Sukuk bond within the worldwide capital market, with or and not using a credit score assure.
President Tinubu had earlier informed the National Assembly that the borrowing plan was important to shut the hole between projected revenues and expenditure within the 2025 fiscal yr, in addition to to fulfill debt compensation obligations.
