President Bola Tinubu has requested the House of Representatives’ approval to borrow $2.35 billion in external capital to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The request was contained in a letter addressed to the Speaker of the House, Rt. Hon. Tajudeen Abbas, and read on the floor of the green chamber on Tuesday.
According to the letter, the external borrowing is backed by provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new loans and refinancing arrangements.
The President said the borrowing plan includes $1.23 billion (N1.84 trillion) provided for in the 2025 Appropriation Act to part-finance the budget deficit, and another $1.12 billion to refinance a eurobond maturing on November 21.
“The Federal Government has recorded considerable success in the issues of Sukuk in the domestic capital market for the development of critical infrastructure projects across the country. Between September 2017 and May 2025, the DMO has raised N1.39 trillion through Sukuk in the domestic capital market to fund critical road infrastructure projects.
“There is a need to pull resources from external sources to complement domestic issues to help bridge infrastructure funding gaps.
“And two, it is imperative to open new sources of funding for the federal government of Nigeria and thereby diversify the investor base as well as deepen the federal government security markets, ” the letter read.
The President explained that the borrowing plan was designed to support the implementation of the 2025 Appropriation Act, refinance maturing Eurobonds, and diversify Nigeria’s funding sources through Islamic finance instruments.
He also stated that the funds would be raised through one or a combination of instruments such as Eurobonds, loan syndications, or bridge financing facilities, depending on prevailing market conditions.
In addition to the $2.35 billion borrowing, President Tinubu is also seeking approval to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM) to fund infrastructure projects and diversify Nigeria’s sources of financing.
The President believed this would help diversify Nigeria’s investor base and deepen the government securities market.
The President expected the pricing of the new Eurobonds to align with current yields on Nigeria’s existing bonds in the international market, ranging between 6.8 per cent and 9.3 per cent, depending on maturity.
He also assured lawmakers that the Federal Ministry of Finance and the Debt Management Office would work with transaction advisers to secure favorable terms and pricing, taking into account market conditions.
According to President Tinubu, the borrowing is necessary to bridge infrastructure funding gaps and open new sources of funding for the federal government.
He further cited Nigeria’s success in issuing Sukuk in the domestic capital market, which has raised N1.39 trillion since 2017 for critical road infrastructure projects.
