President Bola Ahmed Tinubu has formally asked the House of Representatives to approve a fresh external borrowing of $2.347 billion and the issuance of a $500 million sovereign Sukuk to fund key parts of the 2025 national budget and refinance existing debts.
The President’s request was contained in a letter read on the floor of the House by Speaker Abbas Tajudeen during Tuesday’s plenary session.
According to the letter, the borrowing request is in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003, which permits the federal government to raise funds from external sources to support its fiscal plans.
President Tinubu explained that the borrowing is necessary to implement the provisions of the 2025 Appropriation Act, specifically to close the funding gap in the budget and refinance a maturing Eurobond.
The federal government had included N9.28 trillion in new borrowings in the 2025 budget to address a wide fiscal deficit. Out of this figure, N1.84 trillion (approximately $1.229 billion) was earmarked as new external borrowing.
The President added that the government is also seeking to refinance a $1.118 billion Eurobond, which is due for repayment in November 2025. The Eurobond was originally issued in 2018.
“The plan is to refinance the maturing Eurobonds through issuance of Eurobonds, bridge finance facility, loan syndication, or direct borrowing from international financial institutions,” Tinubu wrote.
He said the combined total of new borrowing and refinancing amounts to $2.347 billion.
The President further noted that Nigeria must avoid a potential default on its maturing debts, stressing that refinancing is standard practice in international capital markets.
Tinubu stated that while several options would be considered, the federal government’s preferred route is to issue Eurobonds, taking advantage of Nigeria’s track record in the international capital market.
“The terms and conditions can only be determined at the time of the transactions and will be subject to prevailing market conditions,” he said.
The Federal Ministry of Finance and the Debt Management Office (DMO), he added, will work closely with financial advisers to ensure the country secures the most favourable borrowing terms.
In a separate request, President Tinubu also asked the House to approve the issuance of a $500 million Sovereign Sukuk — Nigeria’s first-ever international Sukuk bond — targeted at infrastructure projects.
A Sukuk is a Sharia-compliant bond structure used in Islamic finance. Unlike traditional bonds, Sukuk holders own a portion of the underlying asset and earn returns instead of interest.
President Tinubu said the Sukuk issuance would be patterned after Nigeria’s successful domestic Sukuk programme, which has raised over N1.39 trillion since 2017 for road construction and other infrastructure.
He added that the international Sukuk would help diversify Nigeria’s funding sources, attract new categories of investors, and deepen the country’s sovereign securities market.
“The debut international Sukuk will be used to fund critical infrastructure across the country while opening up new opportunities in the global Islamic finance market,” Tinubu said.
Both requests come as Nigeria continues to struggle with a growing debt burden, high inflation, and revenue shortfalls. While the government has defended its borrowing as necessary to fund development, many economists have raised concerns about the country’s increasing reliance on debt.
As of mid-2025, Nigeria’s public debt is estimated to have crossed N97 trillion, with foreign borrowing forming a significant portion.
The National Assembly is expected to debate and vote on the President’s requests in the coming weeks.
