President Bola Tinubu has sought approval from the House of Representatives to borrow $2.35 billion in external capital to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
Tinubu’s request was contained in a letter addressed to the Speaker of the House, Tajudeen Abbas, and read on the floor of the green chamber on Tuesday.
The President also wants the parliament to approve his plan to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM) to fund infrastructure projects and diversify Nigeria’s sources of financing.
According to the letter, the external borrowing is backed by provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new loans and refinancing arrangements.
The President said the borrowing plan includes $1.23 billion (N1.84 trillion) provided for in the 2025 Appropriation Act to part-finance the budget deficit, and another $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 N1.39 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.”
According to the President, 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 explained that the Federal Government expects the pricing of the new Eurobonds to align with current yields on Nigeria’s existing bonds in the international market, ranging between 6.8 percent and 9.3 percent, depending on maturity.
On the proposed $500 million sovereign sukuk, Tinubu said the move would help diversify Nigeria’s investor base and deepen the government securities market.
He added that proceeds will support the development of critical infrastructure projects across the country
