Reps Approve Tinubu’s Request To Borrow $2.35bn, Issue $500m Sovereign Sukuk
The House of Representatives has approved President Bola Ahmed Tinubu’s request to borrow $2.35 billion from international lenders and issue an additional $500 million sovereign sukuk bond to fund key infrastructure and development projects across the country.
The approval, granted during the plenary session on Wednesday, followed the adoption of the report presented by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Ahmed Dayyabu Safana.
According to the report, the $2.35 billion loan will be sourced from a mix of multilateral and bilateral financing institutions, including the World Bank, the African Development Bank (AfDB), and the Islamic Development Bank (IsDB).
The funds are earmarked for critical national projects in sectors such as:
- Power and energy infrastructure,
- Agricultural modernization,
- Education and healthcare reform,
- Road and transport networks, and
- Social investment programs targeted at poverty alleviation.
The additional $500 million sovereign sukuk is expected to be raised through domestic and international Islamic finance markets. The sukuk instrument will be deployed mainly to fund capital projects such as road construction and major public works in line with Sharia-compliant investment principles.
Before approval, lawmakers debated extensively on the rising public debt profile and the need for greater transparency in loan utilization. Several members cautioned the executive against excessive borrowing, urging the federal government to ensure that loans are tied strictly to revenue-generating and development-oriented projects.
Minority Leader Hon. Kingsley Chinda (PDP, Rivers) expressed concern about Nigeria’s debt sustainability, warning that “the government must not mortgage the future of Nigerians through reckless borrowing.”
In response, Chairman of the House Committee on Finance, Hon. James Faleke (APC, Lagos), defended the borrowing plan, saying it was necessary to “bridge the infrastructure deficit and stimulate economic growth.”
“The key issue is not borrowing but ensuring proper accountability and effective utilization of every dollar. With proper oversight, these loans will drive long-term economic recovery,” Faleke said.
The approval comes at a time when Nigeria’s total public debt has surpassed ₦107 trillion, according to data from the Debt Management Office (DMO) as of mid-2025. This includes both domestic and external debts accumulated by successive administrations.
President Tinubu’s government has consistently argued that the borrowings are essential to fund the Renewed Hope Agenda, which targets infrastructure renewal, industrialization, and job creation.
In a letter to the National Assembly, the President explained that the loans were part of the 2022–2024 External Borrowing (Rolling) Plan, already approved in principle by the Federal Executive Council (FEC). He emphasized that the funds would be deployed to “priority projects that will yield economic and social benefits for Nigerians.”
With the House of Representatives granting approval, the request now awaits Senate concurrence before being transmitted back to the presidency for final ratification. Once approved, the Ministry of Finance and the DMO will coordinate negotiations and disbursement schedules with the lending institutions.
Analysts say the $2.35 billion loan and the $500 million sukuk, if well-managed, could boost infrastructure delivery and stimulate investor confidence. However, they warn that mismanagement or diversion of funds could worsen Nigeria’s fiscal burden.
As the Tinubu administration pushes forward with its economic recovery strategy, the new borrowing plan marks another major step in the government’s effort to balance fiscal deficits with development needs. The coming months will determine whether these funds translate into visible progress or deepen Nigeria’s debt challenge — a concern that remains at the heart of the public debate
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