Tinubu Requests House Approval For $2.35 Billion External Loan And $500 Million Sukuk To Fund Budget, Infrastructure
President Bola Tinubu has officially sought the House of Representatives’ approval to borrow $2.35 billion in external funds to partly finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The request, contained in a letter to House Speaker Tajudeen Abbas, was read on the floor of the House on Tuesday. Tinubu is also seeking clearance to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM) to support infrastructure projects and broaden Nigeria’s financing options.
The borrowing plan complies with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new loans and refinancing arrangements.
The $2.35 billion proposal consists of $1.23 billion (N1.84 trillion) earmarked in the 2025 Appropriation Act to help close the budget gap, and $1.12 billion to refinance a Eurobond maturing on November 21.
“The Federal Government has recorded significant success issuing Sukuk in the domestic capital market to fund key infrastructure projects,” the letter stated. “From September 2017 to May 2025, the DMO raised N1.39 trillion through domestic Sukuk for road infrastructure projects. Nevertheless, it is crucial to access external funds to complement domestic resources, bridge infrastructure gaps, diversify the investor base, and deepen the government securities market.”
Tinubu explained that the funds could be raised through one or a combination of instruments such as Eurobonds, loan syndications, or bridge financing facilities, depending on market conditions. He added that pricing for the new Eurobonds is expected to mirror current yields on Nigeria’s international bonds, ranging from 6.8 percent to 9.3 percent depending on maturity.
On the $500 million sovereign sukuk, the President said it would diversify Nigeria’s investor base, deepen the government securities market, and finance critical infrastructure projects across the country.
