By Ibrahim Muhammad
President Bola Ahmed Tinubu has written to the House of Representatives seeking approval to obtain a total of $2.347 billion from the international capital market to finance part of the 2025 budget and refinance maturing Eurobonds.
The President’s request, read on the floor of the House by Speaker Tajudeen Abbas at Tuesday’s plenary, includes $1.23 billion in new borrowing to support the 2025 budget deficit and $1.12 billion to refinance existing external debt obligations.
Tinubu also proposed the issuance of Nigeria’s first-ever Sovereign Sukuk in the international capital market — up to $500 million — which may include a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group.
Citing provisions of the Debt Management Office (Establishment) Act, 2003, the President urged lawmakers to authorise the federal government to raise external funds, manage maturing debts, and explore innovative financing options to support government spending and infrastructure development.
He explained that the funds would be sourced through Eurobond issuance, loan syndication, bridge finance facilities, or direct borrowing from international financial institutions, noting that the borrowing is necessary to bridge the gap between projected revenues and planned expenditures for the 2025 fiscal year.
According to the President, the 2025 Appropriation Act provides for ₦9.27 trillion in new borrowings to partly finance the budget deficit, out of which about ₦1.84 trillion (approximately $1.23 billion) is earmarked as new external borrowing at an exchange rate of ₦1,500 to $1.
Tinubu further highlighted Nigeria’s achievements in domestic Sukuk programmes, noting that the Debt Management Office (DMO) had successfully raised ₦1.392 trillion between 2017 and 2025 to fund critical road infrastructure projects.
He explained that the proposed international Sukuk would complement these efforts by attracting foreign investment, diversifying the country’s investor base, and deepening the domestic capital market.
“The Federal Government has recorded remarkable success with Sukuk issuances in the domestic capital market,” the President stated. “There is, therefore, a need to explore external Sukuk issuance to mobilise additional resources for infrastructure development and reduce dependence on conventional debt instruments.”
Tinubu urged the House to approve the proposal, describing it as an important step toward broadening Nigeria’s funding sources, deepening the FGN securities market, and strengthening fiscal sustainability
