President Bola Tinubu has asked the House of Representatives to approve a fresh external borrowing plan and debt refinancing package totaling $2.3 billion, alongside the issuance of a $500 million sovereign Sukuk in the international capital market.
The request, read on the House floor by Speaker Tajudeen Abbas, was made in line with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Act, 2003.
Tinubu explained that the loans are critical to implementing the 2025 Appropriation Act, refinancing Nigeria’s maturing $1.118 billion Eurobond due in November 2025, and expanding the country’s financing options through Islamic financial instruments.
According to the President, the 2025 budget provides for $9.27 billion in total new borrowings to fund the year’s fiscal deficit, out of which $1.84 billion (₦1.23 trillion at ₦1,500/$) is designated for external borrowing.
He requested that the National Assembly authorize the Federal Government to raise the funds through Eurobonds, syndicated loans, bridge financing, or direct borrowing from international financial institutions.
Tinubu emphasized that refinancing the maturing Eurobond is “a standard practice in global debt markets,” ensuring debt sustainability and investor confidence.
In a bid to diversify Nigeria’s funding base, the President also proposed the issuance of a $500 million international Sukuk, possibly backed by a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group.
Citing the “considerable success” of domestic Sukuk offerings — which have raised ₦1.39 trillion since 2017 for critical infrastructure, particularly roads — Tinubu said the global Sukuk would help bridge infrastructure gaps and attract new investors.
If the ICIEC guarantee is activated, 25% of proceeds will be used to repay costly debts, while the balance will fund identified infrastructure projects.
The President assured that the Federal Ministry of Finance and the DMO will work with transaction advisers to secure the most favorable terms for all capital-raising efforts, depending on market conditions.
Tinubu urged the lawmakers to swiftly approve the plan, reaffirming his administration’s commitment to prudent fiscal management and sustainable debt strategy.
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