111
By Tracy Moses
President Bola Tinubu has formally written to the House of Representatives, seeking legislative approval to raise a total of $2.347 billion in external capital as well as permission to issue a stand-alone Sovereign Sukuk worth $500 million on the international market.
The president’s request, contained in a letter read by Speaker Tajudeen Abbas during Tuesday’s plenary, seeks authorisation for the federal government to secure new foreign borrowing of ₦1.843 trillion, equivalent to about $1.229 billion at the 2025 budget exchange rate of $1/N1,500. The funds, Tinubu explained, are intended to part-finance the 2025 budget deficit and refinance an existing $1.118 billion Eurobond maturing later this year.
According to the president, the proposed borrowing will be raised through one or a combination of instruments in the International Capital Market (ICM), including Eurobond issuance, loan syndications, bridge financing from bookrunners, or direct loans from international financial institutions.
Tinubu further explained that the 2025 Appropriation Act approved ₦9.27 trillion in new borrowing to finance the budget deficit, of which ₦1.843 trillion, about $1.229 billion, will be sourced externally. He noted that Nigeria’s $1.118 billion Eurobond, issued in November 2018 at 7.625% with a seven-year maturity, will mature on November 21, 2025. To avoid a potential default, he said the government plans to refinance the bond using one or more of the listed funding options.
“This is a standard practice in global debt markets,” the letter stated. “The resolution of the House is therefore required to authorise the federal government to refinance the maturing Eurobond accordingly.”
When combined with the new borrowing requirement, the total amount Nigeria intends to raise stands at $2.347 billion. Tinubu expressed confidence that Nigeria, as a regular issuer of Eurobonds, can successfully attract the required capital, subject to market conditions. He added that the terms and conditions of the borrowing would be determined at the time of issuance and guided by prevailing market dynamics. The Federal Ministry of Finance and the Debt Management Office (DMO), he said, would work closely with transaction advisers to secure the most favourable terms for the country.
In addition to the external borrowing plan, President Tinubu also asked the House to approve the issuance of a stand-alone debut Sovereign Sukuk of up to $500 million in the international market, with or without a credit guarantee.
The president highlighted Nigeria’s previous successes with Sukuk bonds in the domestic capital market. Between September 2017 and May 2025, the DMO raised about ₦1.392 trillion through Sukuk issuances to finance critical road infrastructure projects across the country. Expanding into the international Islamic finance market, he argued, would help bridge Nigeria’s infrastructure funding gap, diversify the country’s investor base, and deepen the federal government’s securities market.
Tinubu explained that the proposed Sukuk issuance could be guaranteed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group.
The president stressed that approval of the request is crucial for supporting Nigeria’s fiscal plans, refinancing existing debt obligations, and unlocking new funding sources to accelerate infrastructure development. He urged lawmakers to grant the necessary authorisation to raise the proposed $2.347 billion and to approve the debut Sovereign Sukuk issuance, which together will provide the financial flexibility needed to meet the nation’s strategic economic objectives.