President Bola Ahmed Tinubu has written to the House of Representatives, requesting approval for new external borrowing and debt refinancing amounting to $2.3 billion, as well as the issuance of a $500 million debut sovereign Sukuk in the international capital market.
The President’s request, conveyed in a letter read by Speaker Tajudeen Abbas, is in accordance with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.
According to President Tinubu, the proposed external borrowing is aimed at funding key provisions in the 2025 Appropriation Act, refinancing maturing Eurobonds, and expanding Nigeria’s access to diversified funding sources through Islamic finance instruments.
The 2025 budget provides for $9.27 billion in total new borrowings to finance the fiscal deficit, with $1.84 billion (₦1.23 trillion at ₦1,500/$) designated for external loans.
To raise the funds, the President requested legislative authorization to explore multiple financing options, including:
Issuance of Eurobonds,
Loan syndication,
Bridge financing from bookrunners, or
Direct borrowing from international financial institutions.
Tinubu also disclosed plans to refinance Nigeria’s $1.118 billion Eurobond, issued in 2018 at 7.625% interest and due for maturity in November 2025, noting that refinancing would prevent default and sustain investor confidence.
“This is a standard practice in the global debt capital markets,” the President stated, adding that refinancing through Eurobonds or syndicated loans would promote debt sustainability and strengthen market credibility.
In addition, Tinubu sought approval for the issuance of a $500 million sovereign Sukuk in the international market — either with or without a credit enhancement guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group.
He explained that this decision was motivated by the government’s previous success in domestic Sukuk programmes, which have raised ₦1.39 trillion since 2017 to fund critical infrastructure, particularly road projects.
According to the President, if the ICIEC credit guarantee is used, 25% of the proceeds will go toward repaying high-cost debt obligations, while the remainder will finance identified infrastructure projects.
Tinubu further assured lawmakers that the Federal Ministry of Finance and the DMO will collaborate with transaction advisers to ensure the government secures the most favourable borrowing terms and pricing, subject to market conditions.
“Nigeria remains a consistent and reputable issuer in the international capital markets,” he emphasized, expressing confidence in the country’s ability to successfully raise the proposed funds.
Concluding his letter, President Tinubu urged the House of Representatives to pass a resolution authorizing the Federal Government to:
1. Raise $2.347 billion through Eurobonds, syndicated loans, or bridge financing;
2. Refinance the $1.118 billion Eurobond maturing in November 2025; and
3. Issue a $500 million sovereign Sukuk with possible ICIEC credit enhancement.
“I look forward to the prompt passage of the House’s resolution,” the President said, reiterating his commitment to prudent fiscal management and sustainable debt practices.
