PRESIDENT Bola Tinubu has asked the National Assembly to approve a $2.35 billion external loan to fund part of Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.
The request was contained in a letter addressed to the Speaker of the House of Representatives, Tajudeen Abbas, and read during today’s plenary session.
In the letter, President Tinubu also sought approval to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM).
The sukuk, he explained, would help finance key infrastructure projects and diversify the country’s sources of funding.
Citing Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, the President noted that legislative authorization is required for all new loans and refinancing initiatives.
The proposed borrowing plan includes $1.23 billion provided for in the 2025 Appropriation Act to part-finance the fiscal deficit, and $1.12 billion earmarked to refinance a Eurobond maturing on November 21.
According to the President, the government has successfully raised N1.39 trillion through domestic sukuk issuances since 2017, funding major road and infrastructure projects nationwide.
He added that sourcing additional funds from external markets would complement domestic efforts and close Nigeria’s infrastructure financing gap.
Tinubu said the $2.35 billion would be raised through one or a mix of financial instruments — including Eurobonds, loan syndications, or bridge financing — depending on market conditions.
He further explained that the pricing of the new Eurobonds would align with existing yields on Nigeria’s international bonds, currently between 6.8 and 9.3 percent.
On the proposed $500 million sukuk, the President emphasized that the issuance would broaden Nigeria’s investor base and deepen the government securities market while supporting the development of critical national infrastructure.