President Bola Tinubu has requested the approval of the House of Representatives to borrow $2.35 billion in external capital to part-finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The request was contained in a formal letter addressed to Speaker Tajudeen Abbas, which was read during Tuesday’s plenary session at the Green Chamber.
The President also sought parliamentary approval to issue a $500 million debut sovereign Sukuk in the International Capital Market (ICM) to finance infrastructure projects and broaden Nigeria’s access to global funding sources.
According to the letter, the borrowing plan is backed by Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which stipulate that all new loans and refinancing arrangements must receive legislative approval.
Tinubu explained that the borrowing plan comprises:
- $1.23 billion (₦1.84 trillion) to part-finance the 2025 budget deficit, as captured in the Appropriation Act; and
- $1.12 billion to refinance a Eurobond maturing on November 21, 2025.
He noted that the decision to seek external borrowing was to complement domestic financing and to sustain the Federal Government’s infrastructure development efforts.
Tinubu highlighted the government’s success in using Sukuk bonds to finance major infrastructure projects in Nigeria’s domestic capital market.
“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,” the letter read.
“Between September 2017 and May 2025, the DMO has raised ₦1.39 trillion through Sukuk in the domestic capital market to fund critical road infrastructure projects.”
The President said there was now a need to draw from external sources to bridge Nigeria’s widening infrastructure financing gap.
Tinubu said the Federal Government aims to diversify its funding base and deepen the local and international investor markets.
“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,” he stated.
According to him, the external borrowing will be raised through one or a combination of Eurobonds, loan syndications, or bridge financing facilities, depending on prevailing global market conditions.
He explained that the 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% and 9.3%, depending on maturity.
In addition to the $2.35bn borrowing request, Tinubu disclosed plans to issue a $500 million sovereign Sukuk in the international market.
According to him, the initiative will help diversify Nigeria’s investor base, expand access to Sharia-compliant financing, and fund critical infrastructure projects such as roads, energy, and housing.
“The proceeds will support the development of critical infrastructure projects across the country,” the President said.
He added that the debut international Sukuk will further deepen the federal government’s securities market and boost Nigeria’s presence in the global Islamic finance ecosystem.
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