President Bola Ahmed Tinubu has requested the approval of the House of Representatives to secure a total of $2.35 billion from the international capital market to help finance Nigeria’s 2025 budget deficit and refinance maturing Eurobond obligations.
In a letter read on the House floor by Speaker Abbas Tajudeen on Tuesday, Tinubu also sought legislative consent to issue a $500 million debut sovereign Sukuk, aimed at funding critical infrastructure projects across the country.
According to the President, the borrowing plan is anchored on Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003, and aligns with the provisions of the 2025 Appropriation Act, which earmarked N9.28 trillion in new borrowings to finance the fiscal deficit.
Tinubu explained that the total external borrowing would comprise $1.229 billion in fresh funds for the budget deficit and $1.118 billion to refinance Eurobonds maturing in November 2025, bringing the combined figure to $2.347 billion.
He said the refinancing move was designed to “avoid default” and conforms with global best practices in sovereign debt management. The government, he added, intends to explore multiple funding options including Eurobond issuance, bridge financing, loan syndication, or direct borrowing from international financial institutions.
“The House of Representatives is kindly invited to issue its resolution allowing the government to raise the amount through any of the following options,” Tinubu wrote, adding that the final terms would depend on prevailing market conditions.
The President emphasized that Nigeria’s standing as a regular participant in the international debt market positions it to secure favorable terms. The Federal Ministry of Finance and the Debt Management Office (DMO), he said, would work with transaction advisers to negotiate the most beneficial arrangements.
In a related request, Tinubu sought approval for the issuance of a stand-alone $500 million Sovereign Sukuk in the international capital market. The debut international Sukuk, he noted, will mirror Nigeria’s domestic Sukuk program, which has raised over N1.39 trillion since 2017 for major road and infrastructure projects.
The proposed Sukuk, the President explained, is intended to diversify Nigeria’s investor base, open new funding sources, and deepen the sovereign securities market.
