President Tinubu Seeks Lawmakers’ Approval For $2.3bn Foreign Loan, $500m Sukuk Issuance
•By Admin
ABUJA – PRESIDENT Bola Ahmed Tinubu has written to the House of Representatives, requesting parliamentary approval for the federal government to raise a total of $2.347 billion in foreign borrowing, along with authorisation to issue a stand-alone Sovereign Sukuk valued at $500 million in the global market.
The president’s request was conveyed in a letter read on the floor of the House by Speaker Tajudeen Abbas during Tuesday’s plenary session. Tinubu explained that the proposed borrowing, equivalent to ₦1.843 trillion at the 2025 budget exchange rate of ₦1,500 to $1, would be used to partially fund the 2025 budget deficit and refinance an existing $1.118 billion Eurobond set to mature later this year.
According to the letter, the external borrowing will be sourced through one or a mix of instruments in the International Capital Market (ICM), such as Eurobonds, syndicated loans, bridge financing provided by bookrunners, or direct loans from multilateral and bilateral financial institutions.
The president recalled that the 2025 Appropriation Act approved a total of ₦9.27 trillion in new borrowings to cover the fiscal deficit, out of which ₦1.843 trillion (approximately $1.229 billion) would be raised from external sources. He noted that the government must redeem a $1.118 billion Eurobond issued in November 2018, which matures on November 21, 2025. Refinancing the bond, he added, is necessary to avert a potential default.
“This is a standard and widely accepted practice in global debt markets,” Tinubu wrote. “Accordingly, the resolution of the House is required to enable the federal government to refinance the maturing Eurobond.”
Combining the new borrowing and the refinancing requirement, Nigeria aims to raise about $2.347 billion in total. The president expressed optimism that Nigeria, as a frequent issuer in the Eurobond market, will be able to secure the required capital, subject to prevailing market conditions. He assured lawmakers that the terms of the loans would be determined at the time of issuance and would reflect the most favourable market conditions. The Federal Ministry of Finance and the Debt Management Office (DMO), he said, would work with transaction advisers to ensure Nigeria secures the best possible terms.
Tinubu’s letter also sought legislative backing for the issuance of a stand-alone Sovereign Sukuk worth up to $500 million in the international market, with or without a credit guarantee.
Highlighting Nigeria’s success with Sukuk bonds in the domestic capital market, the president revealed that the DMO had raised about ₦1.392 trillion through Sukuk issuances between September 2017 and May 2025 to fund key road infrastructure projects. Expanding this financing model internationally, he argued, would help close Nigeria’s infrastructure financing gap, diversify its investor base, and further deepen the government’s securities market.
The proposed Sukuk issuance, Tinubu noted, could be backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group.
He emphasised that legislative approval of the borrowing plan and Sukuk issuance is essential for implementing the government’s fiscal strategy, refinancing existing debt obligations, and attracting new financing streams to accelerate infrastructure growth. Tinubu therefore urged the House to grant the necessary approvals to enable the government to raise the proposed $2.347 billion and issue the debut Sovereign Sukuk, which together will enhance Nigeria’s fiscal flexibility and support its long-term economic objectives.
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