Tinubu Tables $2.35bn Loan, $500m Sukuk Request Before National Assembly

President Bola Ahmed Tinubu on Tuesday formally requested the House of Representatives to approve plans to raise $2.347 billion from the international capital market. The funds, he explained, would partly finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.....KINDLY READ THE FULL STORY HERE▶

In a separate appeal, the President also sought approval to issue a $500 million debut sovereign Sukuk to fund critical infrastructure projects.

The requests were contained in a letter read by Speaker Tajudeen Abbas during plenary. Tinubu cited Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003, noting that the borrowing was in line with provisions already captured in the 2025 Appropriation Act.

According to him, the 2025 budget includes ₦9.28 trillion in new borrowings, of which ₦1.84 trillion ($1.229 billion) is set aside for external financing.

“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, or direct borrowing from international financial institutions,” the letter stated.

Tinubu clarified that part of the funds would be used to refinance Nigeria’s $1.118 billion Eurobond issued in 2018, which matures on November 21, 2025. He stressed that the refinancing plan was to “avoid default” and maintain Nigeria’s credibility in global debt markets.

He added that while all funding options would be considered, the government’s primary strategy was to issue Eurobonds, drawing on Nigeria’s track record as a regular player 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 realities,” Tinubu explained, adding that the Ministry of Finance and the Debt Management Office would work with transaction advisers to secure the best possible terms.

On the $500 million sovereign Sukuk, Tinubu said the instrument would replicate the success of Nigeria’s domestic Sukuk issuances, which since 2017 have mobilised over ₦1.39 trillion for road and infrastructure projects.

He noted that the international Sukuk would help diversify Nigeria’s investor base, open up new funding streams, and deepen the country’s sovereign securities market.