BY GODWIN OBI
President Bola Ahmed Tinubu has asked the House of Representatives to approve a plan to borrow $2.35 billion in external loans to partly finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The President’s request was contained in a letter to Speaker Tajudeen Abbas, which was read on the floor of the House on Tuesday.
Tinubu also sought the legislature’s nod to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM) to fund key infrastructure projects and broaden Nigeria’s financing sources.
According to the letter, the borrowing plan is in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require National Assembly approval for new borrowing and refinancing arrangements.
The President stated that the $2.35 billion plan comprises $1.23 billion (₦1.84 trillion) already provided in the 2025 Appropriation Act to part-finance the budget deficit, and $1.12 billion earmarked to refinance a Eurobond maturing on November 21, 2025.
“The Federal Government has recorded considerable success with the issuance of Sukuk in the domestic capital market for critical infrastructure projects. Between September 2017 and May 2025, the DMO raised ₦1.39 trillion through Sukuk to fund major road projects across the country,” the letter noted.
Tinubu said the new borrowing would complement domestic funding sources to bridge Nigeria’s infrastructure gaps and diversify the investor base.
He added that the funds may be raised through Eurobonds, loan syndications, or bridge financing facilities, depending on market conditions.
The President further explained that pricing for the proposed Eurobonds would align with prevailing yields on Nigeria’s existing international bonds—estimated between 6.8% and 9.3%, depending on maturity.
On the proposed $500 million international Sukuk, Tinubu said it would help diversify Nigeria’s investor base and deepen the government securities market, with proceeds directed at developing critical infrastructure nationwide.
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