Isaac Samuel
President Bola Ahmed Tinubu has written to the House of Representatives seeking approval to raise a total of $2.347 billion in the international capital market.
This includes a $1.23 billion new loan to help fund the 2025 budget deficit, $1.12 billion to refinance maturing Eurobonds, and the option to issue Nigeria’s first-ever Sovereign Sukuk in the international capital market
In a letter read by Speaker Tajudeen Abbas at the resumption of the plenary session on Tuesday, the President cited the Debt Management Office (Establishment,) Act, 2003, requesting the lawmakers’ authorisation to raise new external funds, manage maturing debt, and tap innovative financing instruments to support government spending and infrastructure development.
The President said the country will access the total $2.347 billion through Eurobond issuance, loan syndication, bridge finance facilities, or direct borrowing from international financial institutions.
The president explained that the new external loan is necessary to bridge the gap between projected revenue and planned expenditure for 2025.
Tinubu also proposed issuing a debut Sovereign Sukuk of up to $500 million, which may include a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
The Sukuk, he noted, would diversify Nigeria’s investor base, deepen the capital market, and mobilize funds for critical infrastructure projects, while potentially repaying higher-cost debt.
The President said: “The House of Representatives may wish to note that 2025 Appropriation Act provides for N9,276,348,934,935.79 as New Borrowings to part-finance the 2025 Budget Deficit, of which N1,843,669,786,987.16 (equivalent of about USD1,229,113,000.00 at the Budget Exchange Rate of USD1.00/N1,500.00) is specified as New External Borrowing.
“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 and Direct Borrowing from International Financial Institutions.
Highlighting Nigeria’s success in domestic Sukuk issuances, Tinubu said the Debt Management Office had raised N1.392 trillion between 2017 and 2025 for road development.
He said the international Sukuk would complement these efforts, providing additional capital to bridge infrastructure funding gaps.
The President added: “The House of Representatives is invited to issue its Resolution authorising the Issuance of a stand-alone debut Sovereign Sukuk of up to USD500m in the ICM based on the following reasons, amongst others:
“The FGN has recorded considerable success in the Issuance of Sukuk in the domestic capital market for the development of critical infrastructure projects across the country.
“Between September 2017 and May 2025, the DMO has raised N1,392.557 trillion through Sukuk in the domestic capital market to fund critical road infrastructure projects. There is the need to pool resources from external sources to complement domestic issuance to help bridge infrastructure funding gaps; and,
“It is imperative to open new sources of funding for the FGN, and thereby diversify investor base, as well as deepen the FGN Securities market. The proposal is for the House of Representatives to approve the issuance of a stand-alone debut Sovereign Sukuk with or without credit enhancement (Guarantee) from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group.
