President Bola Tinubu has requested the approval of the House of Representatives for the Federal Government’s plan to raise $2.34 billion in external borrowing to partly finance the 2025 budget deficit and refinance maturing Eurobonds.
The Speaker, Hon. Abba Tajudeen, read the president’s letter on the floor of the House during Tuesday’s plenary.
According to the letter, Tinubu also sought parliamentary approval for the issuance of a $500 million debut sovereign Sukuk in the international capital market — the first of its kind for Nigeria.
The president explained that the total external capital to be raised amounts to $2.347 billion, comprising $1.229 billion in new external borrowing provided for in the 2025 Appropriation Act and $1.118 billion to refinance maturing Eurobonds due in November.
He said the borrowing would be sourced through a mix of Eurobond issuance, loan syndications, bridge financing, and direct borrowing from international financial institutions, depending on market conditions.
Tinubu stated that the fresh financing aligns with the government’s strategy to fund critical infrastructure, refinance costly debt obligations, and sustain investor confidence in Nigeria’s credit market.
On the planned Sukuk issuance, the president said it would diversify Nigeria’s funding sources, attract ethical investors, and complement domestic Sukuk programmes that have raised over ₦1.39 trillion since 2017 for major road projects across the country.
“The proposed Sukuk may be issued with or without a credit enhancement guarantee from the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) — a member of the Islamic Development Bank Group,” Tinubu noted.
He added that up to 25 per cent of the Sukuk proceeds would be used to refinance high-cost government debts, while the remainder would finance pre-identified infrastructure projects.
Tinubu assured lawmakers that refinancing the maturing $1.118 billion Eurobonds due in November was standard practice in global debt management, aimed at avoiding default and maintaining market credibility.
He further stated that the Federal Ministry of Finance and the Debt Management Office (DMO) would work closely with transaction advisers to secure the most favourable market terms and conditions.
