President Bola Ahmed Tinubu has written to the House of Representatives, seeking approval to raise $2.347 billion from the international capital market.
The funds, according to him, will help finance part of Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.
In the same letter, Tinubu requested lawmakers’ approval for the issuance of a $500 million debut Sovereign Sukuk to support critical infrastructure projects across the country.
The request was read on Tuesday by Speaker Abbas Tajudeen during plenary at the National Assembly.
Tinubu said his proposal was in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003.
He explained that the move was vital to implement the borrowing provisions in the 2025 Appropriation Act and refinance Nigeria’s $1.118 billion Eurobond, which is due to mature in November 2025.
The President disclosed that the 2025 budget earmarked N9.28 trillion in new borrowings to cover the fiscal deficit, with N1.84 trillion (about $1.229 billion) set aside for new external loans.
According to Tinubu, the government will consider several borrowing options, including Eurobond issuance, bridge finance facilities, loan syndication, and direct borrowing from international financial institutions.
He assured lawmakers that all funds raised would be used to part-finance the budget deficit and refinance existing debt to prevent default.
The President stressed that such refinancing is standard global practice to manage debt sustainability and investor confidence.
Tinubu also noted that the total external capital to be raised $1.229 billion for new borrowing and $1.118 billion for refinancing brings the total to $2.347 billion.
He emphasized that Nigeria’s primary plan is to issue Eurobonds, leveraging its reputation as a regular participant in the global debt market.
However, he said final terms and conditions would depend on prevailing market conditions when the transactions are executed.
The President added that the Federal Ministry of Finance and the Debt Management Office (DMO) will work with financial advisers to ensure the best borrowing terms for the country.
In a related request, Tinubu sought the House’s approval to issue a stand-alone debut Sovereign Sukuk worth up to $500 million in the international capital market.
He said the Sukuk would follow the model of Nigeria’s successful domestic Sukuk programme, which has raised over ₦1.39 trillion since 2017 for road construction and other infrastructure projects.
Tinubu noted that the new international Sukuk would diversify Nigeria’s investor base, expand funding sources, and strengthen the sovereign securities market.
The National Assembly is expected to deliberate on the President’s loan and Sukuk requests in the coming days.
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