In a major move to fund its plans for next year, Nigeria’s government has been given the green light to borrow a massive $2.35 billion from foreign sources. The House of Representatives approved President Bola Tinubu’s request, a key step in financing the country’s budget.

The loan is intended to help cover a large gap in the 2025 national budget. President Tinubu explained that the money will be raised from international financial markets using instruments like eurobonds. The government hopes to get interest rates similar to what Nigeria currently pays on its foreign debt, which can be as high as 9.3%.

In a separate but related decision, lawmakers also approved a unique $500 million fund-raising effort known as a “sovereign sukuk.” This is a special type of loan that follows Islamic financial principles. It marks Nigeria’s first time venturing into this specific international market, a move aimed at attracting different types of investors.

The government says this dual approach is crucial. The large loan supports the overall budget, while the sukuk will be dedicated to building and repairing critical infrastructure like roads. A portion of the sukuk money may also be used to pay off some existing, more expensive debt.

This new borrowing plan comes at a time when Nigeria’s total debt is already rising. The government’s strategy is that this influx of foreign money will not only fund development projects but also help strengthen the country’s foreign reserves and stabilise the national currency, the Naira.

With the House’s approval, the president’s financing strategy for the 2025 budget is now set to move forward. The government is betting that this significant new debt will pave the way for economic growth and infrastructure development across the nation.