President Bola Ahmed Tinubu has formally requested the approval of the House of Representatives to raise $2.347 billion from the international capital market as part of efforts to fund Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.

 

In a separate but related request, the President also sought the green light from lawmakers to issue a $500 million debut Sovereign Sukuk, aimed at financing critical infrastructure projects across the country.

 

The two requests were contained in a letter read on the floor of the House during Tuesday’s plenary session by Speaker Tajudeen Abbas.

 

According to President Tinubu, the proposed borrowings align with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003. He explained that the borrowings are already captured in the 2025 Appropriation Act, which outlines ₦9.28 trillion in new loans, including ₦1.84 trillion (approx. $1.229 billion) in 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 stated.

Tinubu further disclosed that part of the requested funding will be used to refinance Nigeria’s $1.118 billion Eurobond, which was issued in 2018 and is due for repayment on November 21, 2025.

 

He said the refinancing is necessary to avoid default, maintain Nigeria’s credit rating, and uphold the country’s credibility in the global debt market—in line with international best practices.

 

“The terms and conditions can only be determined at the time of the transaction and will be subject to prevailing market conditions,” Tinubu said, assuring that the Federal Ministry of Finance and the Debt Management Office (DMO) will work closely with financial advisers to secure favorable terms.

In a bid to diversify Nigeria’s investor base and deepen the sovereign securities market, Tinubu also proposed the issuance of a $500 million Sovereign Sukuk—Nigeria’s first such instrument on the international stage.

 

The President noted that Nigeria’s domestic Sukuk programme, which began in 2017, has already raised over ₦1.39 trillion and has been instrumental in delivering vital infrastructure such as roads and bridges.

 

“This international Sukuk will replicate that success on a larger scale, unlock new sources of capital, and support the execution of priority national projects,” Tinubu said.

The National Assembly is expected to deliberate on the requests in the coming days. If approved, the government will proceed to engage international investors, bookrunners, and financial institutions to execute the funding plans.

 

The move comes as Nigeria faces tight fiscal conditions, growing debt service obligations, and an urgent need to fund critical sectors amid a challenging global economic environment.