President Bola Tinubu has requested the House of Representatives’ approval to borrow $2.35 billion in external capital to finance part of Nigeria’s 2025 budget deficit and refinance the country’s maturing Eurobonds.
The request, contained in a letter addressed to the Speaker of the House, Tajudeen Abbas, was read on the floor of the green chamber on Tuesday.
In addition, President Tinubu is seeking approval to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM) to fund critical infrastructure projects and diversify the nation’s financing sources.
According to the letter, the borrowing plan aligns with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandates legislative approval for all new loans and refinancing initiatives.
The President explained that the external borrowing includes $1.23 billion (₦1.84 trillion) provided for in the 2025 Appropriation Act to part-finance the budget deficit and an additional $1.12 billion to refinance a Eurobond maturing on November 21.
“The Federal Government has recorded considerable success in the issues of Sukuk in the domestic capital market for the development of critical infrastructure projects across the country. Between September 2017 and May 2025, the DMO has raised ₦1.39 trillion through Sukuk in the domestic capital market to fund critical road infrastructure projects,” the letter read.
“There is a need to pull resources from external sources to complement domestic issues to help bridge infrastructure funding gaps. And two, it is imperative to open new sources of funding for the federal government of Nigeria and thereby diversify the investor base as well as deepen the federal government security markets.”
Tinubu noted that the funds would be raised through one or a combination of instruments such as Eurobonds, loan syndications, or bridge financing facilities, depending on prevailing market conditions.
He added that the pricing of the new Eurobonds is expected to align with current yields on Nigeria’s existing international bonds, which range between 6.8 percent and 9.3 percent, depending on maturity.
On the proposed $500 million sovereign sukuk, Tinubu emphasized that the initiative would help attract a broader investor base while supporting the development of key infrastructure projects nationwide.
What you should know
President Bola Tinubu’s latest borrowing proposal aims to stabilize Nigeria’s fiscal position, manage debt obligations, and sustain infrastructure financing.
The move also marks Nigeria’s first planned issuance of a sovereign sukuk in the international market, signaling efforts to expand the country’s financing options beyond traditional Eurobond borrowing.
