Tinubu Secures Lawmakers’ Nod for $2.35bn Loan

• Tinubu Secures Lawmakers’ Nod for $2.35bn Loan
• The country’s total public debt reached N149.39 trillion in the first quarter of 2025
• Officials argue that the loans and sukuk issuance would strengthen Nigeria’s infrastructure base

Nigeria’s House of Representatives has approved President Bola Ahmed Tinubu’s request to borrow $2.35 billion to finance part of the 2025 budget deficit, even as concerns mount over the country’s growing debt profile.

Eko Hot Blog reports that during Wednesday’s plenary, the green chamber also authorised the President to issue a $500 million sovereign sukuk in the international capital market (ICM) to fund key infrastructure projects and diversify Nigeria’s financing sources.

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The approvals followed the consideration and adoption of the report presented by the House Committee on Aids, Loans and Debt Management.

The borrowing plan, according to the federal government, is aimed at closing the budget gap and stimulating capital investment across critical sectors of the economy.

However, the development comes amid renewed debate over Nigeria’s rising debt. The country’s total public debt reached N149.39 trillion in the first quarter of 2025, a sharp increase from N121.7 trillion recorded in 2024.

In September 2025, Speaker of the House, Tajudeen Abbas, warned that Nigeria’s debt profile had crossed a “dangerous threshold,” urging fiscal restraint and improved revenue mobilisation.

The presidency, however, has repeatedly maintained that the current borrowing level remains sustainable and necessary to fund key development projects.

Officials argue that the loans and sukuk issuance would strengthen Nigeria’s infrastructure base, create jobs, and support macroeconomic stability under President Tinubu’s fiscal reform agenda.