Deputy Spokesman Reassures Nigerians About Responsible Use of Approved Loans

Table of Contents

• Government's Assurance on Loan Utilization
• Details of the Borrowing Plan
• Issuance of Sovereign Sukuk
• Addressing Debt Concerns
• National Assembly's Oversight Role
• Long-term Economic Goals

The Deputy Spokesperson of the House of Representatives, Philip Agbese, has reassured Nigerians that the federal government will responsibly utilize the recently approved loans.

While speaking to journalists at the National Assembly, Agbese characterized President Bola Ahmed Tinubu as a “meticulous economic planner” and expressed confidence that every borrowing initiative will be directed toward its intended objectives.

This reassurance follows the approval by both chambers of the National Assembly of President Tinubu’s request to raise a total of $2.347 billion from the international capital market. The funds are aimed at partially financing the 2025 budget deficit and refinancing maturing Eurobonds.

According to the House Committee on Aids, Loans, and Debt Management, the borrowing strategy is divided into two components: $1.23 billion will be allocated to fund the 2025 budget deficit, while $1.12 billion will be used to refinance a Eurobond that matures in November 2025. The loans may be acquired through Eurobond issuance, loan syndication, bridge financing, or direct borrowing from multilateral institutions.

It is noteworthy that lawmakers also approved the issuance of Nigeria’s first-ever Sovereign Sukuk of up to $500 million, aimed at attracting Islamic-compliant investors and diversifying the country’s external borrowing options.

Addressing concerns regarding the increasing public debt, Agbese stressed that the administration’s borrowing strategies are guided by clear frameworks and measurable developmental outcomes. “Every loan under this administration is meticulously planned with both repayment and development in mind. Nigerians can be confident that the funds will be utilized responsibly,” he stated.

Agbese also emphasized the National Assembly’s role in maintaining oversight, asserting that all loans are thoroughly examined to ensure transparency and accountability.

The lawmaker pointed to Tinubu’s history as Lagos State Governor as proof of his ability for strategic planning and fiscal discipline. He added that the President’s Renewed Hope Agenda is focused on long-term economic growth, job creation, industrial expansion, and infrastructural renewal.

“Without a doubt, President Tinubu will ensure that every loan is used for its intended purpose. Nigerians should remain patient as the administration implements measures aimed at sustainable development,” Agbese concluded.