Nigerias President 3.webp
The Digest:

The House of Representatives has approved President Bola Tinubu's request to borrow $2.35 billion and issue a $500 million sovereign sukuk, endorsing a major external financing plan to fund the 2025 budget deficit and critical infrastructure. According to TheCable, the approval grants the government authority to raise the funds through instruments like Eurobonds, aiming to diversify Nigeria's investor base and support development projects.

Key Points:
  • The House of Representatives has approved a $2.35 billion external loan for President Tinubu.
  • The chamber also approved the issuance of a $500 million sovereign sukuk.
  • The funds are intended to finance the 2025 budget deficit and infrastructure projects.
  • The borrowing is backed by provisions of the Debt Management Office Act.
  • The sovereign sukuk is a debut international issuance to diversify funding sources.
  • Proceeds may also be used to repay high-cost existing debt.
  • The government expects pricing to align with current yields on existing bonds.
This significant legislative endorsement deepens the nation's financial strategy, betting on future infrastructure and economic stability through present debt.


Sources: The Cable