President Bola Ahmed Tinubu has formally requested the House of Representatives to approve a plan for the Federal Government to secure a total of $2.34 billion in external financing to support Nigeria’s 2025 budget and refinance maturing Eurobond obligations.
The request, which was read by Speaker of the House, Rt. Hon. Abba Tajudeen, during Tuesday’s plenary session, also includes approval for a $500 million debut sovereign Sukuk to be issued in the international capital market.
In his letter to the legislature, President Tinubu explained that the proposed borrowing is in line with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003. He noted that the total amount of $2.347 billion comprises $1.229 billion in new external loans as provided for in the 2025 Appropriation Act, and an additional $1.118 billion for refinancing Eurobonds due in November.
The President outlined that the government intends to source the funds through a mix of Eurobond issuances, syndicated loans, bridge financing, and borrowings from international financial institutions, depending on prevailing market conditions.
According to Tinubu, the initiative aligns with the government’s fiscal strategy to finance infrastructure projects, manage debt sustainability, and boost investor confidence in Nigeria’s credit market. He stressed that the proposed Sukuk issuance would not only diversify Nigeria’s funding base but also attract ethical investors and complement the domestic Sukuk program, which has already generated over N1.39 trillion for key infrastructure projects since 2017.
“The proposed $500 million sovereign Sukuk may be issued with or without a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group,” Tinubu stated. “Up to 25% of the proceeds may be used to refinance high-cost debts, while the remainder will fund critical infrastructure projects.”
The President emphasized that refinancing maturing Eurobonds is a globally accepted debt management strategy aimed at preventing default and maintaining Nigeria’s credit credibility. He assured lawmakers that the Ministry of Finance and the DMO would work closely with transaction advisers to secure the most favorable market terms.
Analysts believe the move signals the administration’s commitment to fiscal discipline while leveraging international capital markets to strengthen Nigeria’s economic stability and infrastructural expansion.
