President Bola Tinubu has officially asked for the House of Representatives’ approval to secure $2.35 billion in external borrowing to partly fund the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
His request, contained in a letter addressed to House Speaker Tajudeen Abbas, was read on the House floor on Tuesday.
Tinubu, also in the same letter, sought approval to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM) to finance infrastructure projects and broaden Nigeria’s financing options.
As stated by the President, the borrowing plan aligns with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative consent for new loans and refinancing arrangements.
The $2.35 billion proposal includes $1.23 billion (N1.84 trillion) already provided in the 2025 Appropriation Act to partly cover the budget deficit, with an additional $1.12 billion earmarked to refinance a Eurobond maturing on November 21.
The letter stated: “The Federal Government has successfully issued Sukuk in the domestic capital market to fund critical infrastructure projects.”
“From September 2017 to May 2025, the DMO raised N1.39 trillion through domestic Sukuk for road projects. However, tapping external sources is essential to complement domestic funding, bridge infrastructure gaps, diversify the investor base, and deepen the government securities market.”
Tinubu said the funds could be raised through Eurobonds, loan syndications, or bridge financing facilities, depending on market conditions, with pricing expected to reflect current yields on Nigeria’s international bonds, ranging from 6.8 percent to 9.3 percent depending on maturity.
On the proposed $500 million sovereign sukuk, the President emphasized that it would help diversify Nigeria’s investor base, strengthen the government securities market, and fund essential infrastructure projects nationwide.