President Bola Tinubu
President Bola Tinubu has formally requested the House of Representatives to approve the Federal Government’s plan to secure $2.34 billion in external funding.
According to details read by House Speaker Rep. Abba Tajudeen during Tuesday’s plenary session, the president also sought legislative backing for a proposed $500 million sovereign Sukuk—the first ever to be issued by Nigeria in the international capital market.
The request, as reported by the News Agency of Nigeria (NAN), aims to partly finance Nigeria’s 2025 budget deficit and refinance $1.118 billion in Eurobonds maturing in November.
Tinubu’s letter, submitted in line with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act of 2003, outlined that the total sum to be raised externally is approximately $2.347 billion. This includes $1.229 billion earmarked under the 2025 Appropriation Act and another $1.118 billion set aside for Eurobond refinancing.
The president explained that the funds would be sourced through a combination of Eurobond issuance, syndicated loans, bridge financing, and direct borrowing from global financial institutions—depending on prevailing market conditions.
He emphasized that this approach is part of a broader fiscal strategy aimed at improving infrastructure, managing costly debt obligations, and reinforcing investor confidence in Nigeria’s financial outlook.
Speaking on the proposed Sukuk offering, Tinubu noted:
> “The proposed Sukuk may be issued with or without a credit enhancement guarantee from the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) — member of the Islamic Development Bank Group.”
He added that up to 25% of the Sukuk proceeds could go toward refinancing expensive debts, while the remaining funds would be dedicated to specific infrastructure projects.
“The Sukuk will diversify Nigeria’s funding sources, attract ethical investors, and complement existing domestic Sukuk programmes which have raised over $1.39 trillion since 2017 for key road infrastructure,” he stated.
The president reassured lawmakers that refinancing the maturing Eurobonds is a standard debt management practice aimed at preserving market credibility and avoiding default.
He also affirmed that the Ministry of Finance and the Debt Management Office will work closely with transaction advisers to secure the best possible terms when the funding is raised.
NAN
