Adedayo Akinwale in Abuja

The House of Representatives has approved the request by President Bola Tinubu to implement the new external borrowing plan as contained in the 2025 Appropriation Act to refinance maturing Eurobonds, and issue a debut Sovereign Sukuk in the International Capital Market. 

The president had, in a letter read at plenary on October 7 sought the approval of the House to implement the new external borrowing planning in the 2025 Appropriation Act to refinance maturing eurobond and issue a debut sovereign sukuk in the international market. 

The president’s letter dated September 22, 2025 was titled ‘Request for the resolution of the National Assembly to implement new external borrowing in the 2025 appropriation act, refinance maturing Euro bonds and issue debt sovereign sukuk in the international capital market.’

Tinubu said the purpose of the letter is to seek a resolution of the House pursuant to the provisions of sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003 to implement the New External Borrowing of N1,843,669,786,987.16 (equivalent of $1,229,113,000.00 at the budget exchange rate of $1.00/N1,500.00) in the 2025 Appropriation Act for the part-financing of the budget deficit. 

He is also seeking a resolution to refinance the $1,118,352,000.00 Eurobonds (7.625% $1.118BN Nov 2025) maturing on November 21, 2025; access aggregate external capital of $2,347,465,000.00 ($1.229bn and $1.118bn).

However, the report of the House Committee on Loans and Debt was presented to the House at the plenary on Wednesday for consideration by the chairman of the committee, Hassan Nalaraba. 

But there was a mild drama when the Deputy House Leader, Hon. Abdullahi Halims, who earlier moved for the consideration of the report, also said the report should be stepped down for further consultation. 

The Speaker, Hon. Abbas Tajudeen, wondered why Halims should be moving a motion to step down the consideration of the report when he was not fully abreast with the content of the report. 

Subsequently, the House considered and approved the Implementation of the New External Borrowing of N1,843,669,786,987.16 (equivalent of $ 1,229,113,000.00 at the Budget Exchange rate of $1.00/N1,500) provided as new external borrowing in the 2025 Appropriation Act, to part-finance the budget deficit of N9,276,348,934,935.79

The green chamber further approved the request to refinance the $1,118,352,000.00 Eurobonds (7.625 per cent $1.118bn Nov 2025) maturing on November 21, 2025.

The House also approved the request by the president to access aggregate external capital of $2,347,465,000.00 ($1.229bn and $1.118bn), through any of the following option(s) in the International Capital Market (ICM): Issuance of Eurobonds, Loan Syndications, Bridge Finance Facility from Bookrunners and Direct Borrowing from international Financial Institutions. 

The lawmakers also approved the request to issue a stand-alone debut Sovereign Sukuk of up to $500 million in the ICM with or without credit enhancement (guarantee).

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