By Obinna Uballa
President Bola Ahmed Tinubu has asked the House of Representatives to approve fresh external borrowing of $2.347 billion and the issuance of a $500 million debut sovereign Sukuk in the international capital market.
The request, read on the floor of the House on Tuesday by Speaker Abbas Tajudeen, is aimed at funding part of the 2025 budget deficit, refinancing Nigeria’s $1.118 billion Eurobond maturing in November 2025, and expanding the country’s access to diversified external financing.
Tinubu, in his letter, cited Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003 as the basis for the request. He explained that the 2025 budget provided for N9.28 trillion in new borrowings to bridge the fiscal deficit, out of which N1.84 trillion (about $1.229 billion) was earmarked as external loans.
“The House of Representatives is kindly invited to issue its resolution allowing the government to raise the amount through any of the following options: issuance of Eurobonds, bridge finance facility from bookrunners, loan syndication, or direct borrowing from international financial institutions,” the President wrote.
Tinubu said refinancing the Eurobond was necessary to avoid default, adding that the plan aligns with international best practices in debt capital markets.
He explained that while all financing options will be explored, Nigeria’s primary strategy is to issue Eurobonds, leveraging its established presence in the global debt market. “The terms and conditions can only be determined at the time of the transactions and will be subject to prevailing market conditions,” he stated.
On the Sukuk issuance, the President said the proposed $500 million debut sovereign Sukuk will be modeled after the country’s domestic Sukuk programme, which has raised over N1.39 trillion since 2017 for road and infrastructure projects.
According to him, the Sukuk will diversify Nigeria’s investor base, create new funding channels, and further deepen the sovereign securities market.
