President Bola Ahmed Tinubu has sought the approval of the House of Representatives for new external borrowing and debt refinancing totalling $2.3 billion, as well as the issuance of a $500 million debut sovereign Sukuk in the international capital market.
The request, contained in a letter read on the floor of the House by Speaker Tajudeen Abbas on Tuesday, seeks the National Assembly’s resolution in line with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.
According to the President, the borrowing will be used to implement provisions of the 2025 Appropriation Act, refinance maturing Eurobonds, and diversify Nigeria’s funding sources through Islamic finance instruments.
Tinubu explained that the 2025 budget provides for a total of $9.27 billion in new borrowing to finance the fiscal deficit, out of which $1.84 billion (₦1.23 trillion) is earmarked for external loans.
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He urged lawmakers to authorise the Federal Government to source the funds through any of the following options: issuance of Eurobonds, loan syndication, bridge financing from bookrunners, or direct borrowing from international financial institutions.
The President further disclosed that Nigeria’s $1.118 billion Eurobond, issued in 2018 at 7.625% and maturing in November 2025, would be refinanced to avoid default.
“This is a standard practice in debt capital markets,” Tinubu stated, adding that refinancing through Eurobonds or syndicated loans would help ensure debt sustainability and investor confidence.
In a related move to expand Nigeria’s access to Islamic finance, the President also sought approval to issue a standalone sovereign Sukuk of up to $500 million in the international market — with or without a credit enhancement guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group.
