The House of Representatives has approved President Bola Ahmed Tinubu’s request for new external borrowing of ₦1.767 trillion (approximately USD 2.209 billion) as part of the 2024 Appropriation Act. The funds will be raised through a combination of Eurobonds and other financing sources, including the debut issuance of sovereign Sukuk and bridge or syndicated loans, depending on market conditions.

The approval followed the presentation of a report by the House Committee on Loans and Debt, which endorsed the borrowing plan. Speaker Abbas Tajudeen read the President’s request to lawmakers earlier this week, prompting detailed discussions on the government’s financing strategy.

Lawmakers highlighted that the recent exchange rate adjustment, which saw the Nigerian Naira move from USD1/₦800 to around ₦1,640, would generate surplus funds. These additional resources, they stressed, would be dedicated to capital projects aimed at boosting long-term economic growth and infrastructure development in Nigeria throughout 2024.

In addition to the external borrowing approval, the House also authorized a Promissory Note Programme and Bond Issuance to settle outstanding federal government liabilities. This approval prioritizes issuing Promissory Notes to address debts owed to states, high-priority judgment debts, and other liabilities incurred by federal ministries, departments, and agencies. This strategy is aimed at preventing additional interest costs and mitigating further increases in Nigeria’s debt profile, ultimately helping to reduce the nation’s debt-to-GDP ratio.

The House directed the Minister of Finance and Coordinating Minister of the Economy, alongside the Debt Management Office, to take the necessary steps to implement these measures and ensure that funds are efficiently utilized for their intended purposes.