The House of Representatives has approved President Bola Ahmed Tinubu’s request to borrow $2.35 billion to finance part of the 2025 budget deficit, despite growing concerns over Nigeria’s rising debt profile.
The approval was granted on Wednesday after lawmakers considered the report of the House Committee on Aids, Loans, and Debt Management.
In addition to the loan approval, the Green Chamber also gave consent for the issuance of a $500 million sovereign sukuk in the international capital market (ICM) to fund key infrastructure projects and diversify the nation’s financing sources.
The presidency said the new borrowing is part of measures to sustain fiscal stability and bridge critical funding gaps in the 2025 budget.
However, the move comes amid mounting concerns about Nigeria’s debt burden, which has continued to grow in recent years.
According to the Debt Management Office (DMO), Nigeria’s total public debt rose to ₦149.39 trillion in the first quarter of 2025, up from ₦121.7 trillion in 2024.
In September 2025, Speaker of the House of Representatives Tajudeen Abbas described the nation’s debt profile as having crossed a “dangerous threshold,” urging caution in further borrowing.
The Presidency, however, has defended the administration’s borrowing policy, maintaining that the Tinubu-led government is focused on “responsible and strategic borrowing” targeted at growth-oriented projects.