President Bola Ahmed Tinubu has requested the House of Representatives to approve the Federal Government’s plan to raise $2.3 billion in external capital for the 2025 fiscal year.
The proposal includes $1.2 billion in new external borrowing and $1.1 billion for refinancing a maturing Eurobond.
In a letter addressed to the House and read on the floor by Speaker Hon. Abbas Tajudeen on Tuesday, President Tinubu explained that the funds would be raised through a combination of instruments, including the issuance of Eurobonds, bridge financing facilities from book runners, loan syndications, and direct borrowing from international financial institutions.
According to the president, the borrowing is part of a broader strategy to maintain debt sustainability while ensuring continued investment in infrastructure and other key sectors that drive economic growth. He noted that the proposed refinancing of the Eurobond was aimed at managing Nigeria’s debt profile and mitigating repayment pressures in 2025.
“The Federal Government has recorded considerable success in the issuance of Sukuk in the domestic capital market for the development of critical infrastructural projects across the country,” the president stated.
He added that between September 2017 and May 2025, the Debt Management Office (DMO) successfully raised N1.39 trillion through the issuance of Sukuk bonds in the domestic capital market, which have been channelled toward the construction and rehabilitation of major roads and bridges nationwide.
The president further emphasized that borrowing remains a necessary fiscal tool to bridge Nigeria’s infrastructure gap, stimulate job creation, and attract private sector participation.
In July, the Senate approved the 2025-2026 external borrowing plan of $21.5 billion presented by President Tinubu for consideration.
The Senate also approved the issuance of a Federal Government Bond of N757 billion for payment of accrued rights pension arrears as of December 2023 for the Contributory Pension Scheme (CPS).
Nigeria’s total public debt rose to N149.39 trillion as of March 31, 2025, marking a year-on-year increase of N27.72 trillion or 22.8% when compared to the N121.67 trillion recorded in the corresponding period of 2024.
Earlier, Naijaonpoint reported that Nigeria is in discussions with China’s Export-Import Bank for a $2 billion loan to finance a new “super grid” aimed at easing the country’s chronic power shortages and boosting industrial growth.
Minister of Power, Adebayo Adelabu, disclosed this during an economic summit in Abuja on Monday, noting that the new transmission infrastructure will link the eastern and western regions of the country, where most of Nigeria’s industrial consumers are located.