BREAKING: Amidst Hardship, Tinubu Seeks Fresh $2.35 Billion External Loan, $500 Million Sovereign Sukuk
President Bola Ahmed Tinubu on Tuesday asked the House of Representatives to approve plans to raise a total of $2.347 billion from the international capital market to partly fund the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
In a separate request, the President also sought clearance to issue a $500 million debut sovereign Sukuk to support critical infrastructure projects.
TGM gathered that the requests were contained in a letter read on the floor of the Green Chamber by Speaker Abbas Tajudeen during plenary on Tuesday.
Tinubu said the requests were made pursuant to Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003, stressing that they were necessary to give effect to the borrowing provisions already approved in the 2025 Appropriation Act.
He explained that the 2025 budget provided for N9.28 trillion in new borrowings, out of which N1.84 trillion ($1.229 billion) was earmarked for external financing.
“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 letter read.
The President stated that part of the capital to be raised would be used to refinance the $1.118 billion Eurobond issued in 2018, which is due on November 21, 2025.
He warned that the refinancing plan was to “avoid default” and ensure Nigeria adhered to international best practices in debt capital markets.
Tinubu noted that while all funding windows would be explored, the government’s main plan was to issue Eurobonds, leveraging Nigeria’s record as a frequent participant in the international capital market.
“The terms and conditions can only be determined at the time of the transactions and will be subject to prevailing market conditions,” he added, stressing that the Federal Ministry of Finance and the Debt Management Office would work with transaction advisers to secure favourable terms.
In addition, Tinubu requested parliamentary approval for a stand-alone debut Sovereign Sukuk of up to $500 million in the international capital market.
He said the instrument would mirror the success of Nigeria’s domestic Sukuk issuances, which since 2017 have raised over N1.39 trillion for roads and other infrastructure.
According to him, the international Sukuk aims to diversify Nigeria’s investor base, unlock new funding sources, and deepen the sovereign securities market.
