President Bola Ahmed Tinubu has written to the House of Representatives, seeking approval to raise $2.347 billion from the international capital market to fund part of the 2025 budget deficit
The President also requested the lawmakers’ approval for the issuance of a $500 million debut Sovereign Sukuk to support critical infrastructure development across the country.
The request was contained in a letter read on the floor of the House by Speaker Abbas Tajudeen during plenary on Tuesday.
Tinubu said the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003.
According to him, the borrowing plan is essential to implement the 2025 Appropriation Act, refinance the $1.118 billion Eurobond maturing in November 2025, and broaden Nigeria’s access to diversified external funding sources.
He explained that the 2025 budget provides for N9.28 trillion in new borrowings to bridge the fiscal deficit, out of which N1.84 trillion (about $1.229 billion) was earmarked for new external borrowing.
“The House of Representatives is kindly invited to issue its resolution allowing the government to raise the amount through any of the following options: issuance of Eurobonds, bridge finance facility from bookrunners, loan syndication, or direct borrowing from international financial institutions,” the President wrote.
Tinubu said the funds will be deployed to part-finance the 2025 budget deficit in line with the approved fiscal framework.
He also sought parliamentary approval to refinance the $1.118 billion Eurobond issued in 2018, which will mature on November 21, 2025, noting that the move is necessary to “avoid default” and aligns with international best practices in debt capital markets.
“The plan is to refinance the maturing Eurobonds through issuance of Eurobonds, bridge finance facility, loan syndication, or direct borrowing from international financial institutions,” the letter added.
The President noted that the aggregate external capital to be raised — comprising $1.229 billion for new borrowing and $1.118 billion for refinancing — amounts to $2.347 billion in total.
Tinubu emphasised that while all options will be explored, the government’s primary plan is to issue Eurobonds, leveraging Nigeria’s established presence in the international capital market.
“The terms and conditions can only be determined at the time of the transactions and will be subject to prevailing market conditions,” he said, adding that the Federal Ministry of Finance and the Debt Management Office (DMO) will collaborate with transaction advisers to secure the most favourable terms.
In a separate but related request, the President urged the House to authorise the issuance of a stand-alone debut Sovereign Sukuk of up to $500 million in the international capital market.
He stated that the international Sukuk would be modelled after Nigeria’s domestic Sukuk issuances, which have raised over ₦1.39 trillion since 2017 for road and infrastructure projects.
Tinubu said the initiative aims to diversify Nigeria’s investor base, expand funding sources, and deepen the sovereign securities market.