President Bola Ahmed Tinubu has requested the approval of the House of Representatives to obtain $2.35 billion in external financing to part-fund the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The President’s request was contained in a letter addressed to the Speaker of the House of Representatives, Tajudeen Abbas, and read on the floor of the Green Chamber on Tuesday.
Tinubu also sought legislative approval to float a $500 million debut sovereign Sukuk on the International Capital Market (ICM), aimed at funding key infrastructure projects while diversifying the nation’s sources of external financing.
In his correspondence, President Tinubu said the borrowing request is in line with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandate legislative approval for new loans and refinancing frameworks.
He explained that the loan component includes $1.23 billion (N1.84 trillion), already captured in the 2025 Appropriation Act, to finance the budget deficit. Additionally, another $1.12 billion will be used to refinance a Eurobond maturing on November 21, 2025.
“The Federal Government has recorded considerable success in the issuance of Sukuk in the domestic capital market for the development of critical infrastructure projects across the country,” the letter read.
“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.”
The President argued that accessing the international market would complement domestic borrowing and ensure Nigeria remains competitive in attracting global investors.
“There is a need to pull resources from external sources to complement domestic issues to help bridge infrastructure funding gaps,” Tinubu added.
“It is also imperative to open new sources of funding for the Federal Government and thereby diversify the investor base as well as deepen the federal government’s securities market.”
*Eurobond refinancing, market conditions
The proposed $2.35 billion would be raised through one or a combination of Eurobonds, syndicated loans, or bridge financing facilities, depending on prevailing international market conditions.
Tinubu explained that the pricing of the new Eurobonds would align with Nigeria’s existing sovereign debt instruments, which currently yield between 6.8 per cent and 9.3 per cent, depending on maturity.
The proposed $500 million sovereign Sukuk is designed to fund priority projects in transport, power, and housing, in line with the administration’s Renewed Hope Agenda for infrastructure expansion.
According to the President, proceeds from the Sukuk will “support the development of critical infrastructure projects across the country” while deepening Nigeria’s presence in the Islamic finance market and attracting long-term investors.
Tinubu’s request comes at a time when the administration faces mounting pressure to close financing gaps amid sluggish revenue growth, high debt servicing obligations, and inflationary pressures.
Fiscal analysts say the move reflects the government’s attempt to balance budgetary discipline with developmental spending, while repositioning Nigeria’s debt portfolio for better sustainability through refinancing rather than fresh accumulation.
