By President Bola Ahmed Tinubu has written to the House of Representatives seeking legislative approval to implement new external borrowing under the 2025 Appropriation Act, refinance maturing Eurobonds, and issue Nigeria’s first-ever sovereign Sukuk in the international capital market.
According to the letter addressed to the Speaker of the House, the request aligns with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003.
The Federal Government plans to raise about ₦1.84 trillion, equivalent to 1.23 billion dollars, as new external borrowing to part-finance the 2025 budget deficit. Out of the ₦9.27 trillion new borrowing captured in the 2025 Appropriation Act, ₦7.43 trillion will be sourced domestically, while ₦1.84 trillion will come from external sources.
Nigeria’s 1.118 billion dollars Eurobond, issued in 2018 and due to mature in November 2025, is also set for refinancing to prevent default and maintain credit stability. The government intends to refinance it through Eurobond issuance, loan syndication, bridge financing, or direct borrowing from international financial institutions.
The combined external capital to be raised amounts to 2.347 billion dollars, covering both the new borrowing and Eurobond refinancing. The Ministry of Finance and the Debt Management Office (DMO) are expected to collaborate with international advisers to secure favourable terms based on prevailing market conditions.
In addition, the President requested approval for the issuance of a stand-alone 500 million dollar sovereign Sukuk in the international capital market. This marks Nigeria’s debut Sukuk issuance outside the domestic market and is aimed at attracting foreign investors, diversifying funding sources, and financing key infrastructure projects. Between 2017 and 2025, the Federal Government has raised ₦1.39 trillion through domestic Sukuk to fund critical road infrastructure.
The government may also consider obtaining 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, to strengthen investor confidence. About 25 percent of the proceeds from the Sukuk may be used to offset high-interest debts, while the remainder will fund strategic infrastructure projects.
If approved, the loan request will support the 2025 budget implementation, ensure timely refinancing of maturing debts, and expand Nigeria’s presence in both conventional and Islamic capital markets. President Tinubu urged the House of Representatives to grant prompt approval to sustain Nigeria’s fiscal credibility and prevent disruptions in financing plans.
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