President Bola Tinubu has formally requested the House of Representatives to approve a total external capital raise of $2.347 billion. This funding is necessary to cover a part of the 2025 budget deficit and refinance existing Eurobonds.
The request was formally presented to the legislature on Tuesday by the Speaker, Rep. Abba Tajudeen. The president also sought approval for a $500 million debut sovereign Sukuk in the international market.
The request adheres to the Debt Management Office (DMO) Establishment Act 2003. The total external capital includes $1.229 billion in new borrowing from the 2025 Appropriation Act and $1.118 billion for refinancing debt.
He further stated that the money was to refinance maturing Eurobonds due in November.
Tinubu said that the borrowing would be sourced through a mix of Eurobond issuance, loan syndications, bridge financing and direct borrowing from international financial institutions, depending on market conditions.
He said that the new financing was part of the government’s strategy to support infrastructure development, refinance costly debt obligations and sustain investor confidence in Nigeria’s credit market.
The president sought for the legislature’s authorisation for the issuance of a stand-alone 500 million dollar sovereign Sukuk in the international capital market — the first of its kind for Nigeria.
He said that the Sukuk would diversify Nigeria’s funding sources, attract ethical investors and complement domestic Sukuk issuances that had raised over 1.39 trillion dollar since 2017 for critical road projects across the country.
“The proposed Sukuk may be issued with or without a credit enhancement guarantee from the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) — member of the Islamic Development Bank Group
“Under the plan, up to 25 per cent of the proceeds could be used to refinance high-cost government debts, while the balance will fund pre-identified infrastructure projects,” he said.
Tinubu assured that the refinancing of the maturing 1.118 billion dollar Eurobonds due in November was a standard practice in global debt management, aimed at avoiding default and maintaining market credibility.
He affirmed the willingness of the Federal Ministry of Finance and the Debt Management Office to collaborate with transaction advisers to ensure the most favourable market terms and conditions at the time of issuance
