President Bola Tinubu has formally written to the House of Representatives seeking approval to borrow $2.35 billion from external sources to cover part of the 2025 budget deficit and refinance maturing Eurobonds.
The request, detailed in a letter to Speaker Tajudeen Abbas, was read on the House floor on Tuesday, October 7.
In the same letter, Tinubu also proposed issuing a $500 million sovereign sukuk in the International Capital Market to fund infrastructure projects and expand Nigeria’s financing channels.
Citing Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, the President explained that parliamentary approval is required for new borrowing and refinancing operations.
The external borrowing plan includes $1.23 billion allocated under the 2025 Appropriation Act to partially fund the budget deficit and $1.12 billion to refinance a Eurobond due on November 21.
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“The Federal Government has recorded considerable success in issuing Sukuk in the domestic capital market for critical infrastructure. Between September 2017 and May 2025, the DMO raised N1.39 trillion to fund key road projects,” the letter read.
Tinubu said the additional external funds are needed to complement domestic financing and bridge gaps in infrastructure funding.
He noted that new funding instruments will also diversify Nigeria’s investor base and deepen the federal government securities market.
The President added that the funds may be raised through a combination of Eurobonds, loan syndications, or bridge financing, depending on market conditions, with new Eurobond yields expected to range between 6.8 and 9.3 percent internationally.
Regarding the proposed $500 million sukuk, Tinubu said it would support infrastructure development while attracting a broader pool of investors, ultimately strengthening Nigeria’s financial and capital markets.