October 8, 2025-Published by Cyril
President Bola Ahmed Tinubu has formally requested the Senate’s approval to secure $2.35 billion in external loans to part-finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds, alongside a $500 million Sovereign Sukuk issuance to support key infrastructure projects across the country.
The request was contained in a letter read on the Senate floor by Senate President Godswill Akpabio, outlining the Federal Government’s strategy to bridge funding gaps, manage debt obligations, and attract new investors into Nigeria’s capital markets.
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According to the President, the borrowing plan includes ₦1.843 trillion (about $1.229 billion) in new external loans to help finance the 2025 Appropriation Act, and $1.118 billion to refinance Eurobonds issued in 2018, which will mature in November 2025.
Senate President Akpabio has referred the proposal to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko (APC, Sokoto North), directing the panel to review the request and submit its report within one week.
In his letter, President Tinubu stated that the funds would be sourced through various instruments within the International Capital Market (ICM), including Eurobonds, syndicated loans, bridge finance facilities, or direct borrowing from international financial institutions.
He explained that the 2025 Appropriation Act provides for ₦9.276 trillion in new borrowings to cover the fiscal deficit, with ₦1.843 trillion expected to come from external sources.
- “Refinancing the maturing Eurobonds is a standard global debt practice and is necessary to prevent default,” Tinubu said. “The plan is to refinance through Eurobond issuance, bridge financing, syndicated loans, or direct borrowing, depending on prevailing market conditions.”
The President emphasized that Nigeria remains a regular and credible participant in the international capital market and is well-positioned to raise the proposed funds. He assured that the Federal Ministry of Finance and the Debt Management Office (DMO) would collaborate with transaction advisers to secure the most favorable financing terms.
In a related development, President Tinubu also sought Senate approval to issue a $500 million Sovereign Sukuk in the international market — Nigeria’s first stand-alone foreign Sukuk — to fund major infrastructure projects and diversify funding sources.
He explained that the Sukuk may be backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group, to enhance investor confidence.
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Tinubu noted that Nigeria has successfully raised ₦1.392 trillion through domestic Sukuk issuances since 2017, which have funded key road and infrastructure projects nationwide. Expanding Sukuk issuance internationally, he said, will help mobilize more funds, broaden Nigeria’s investor base, and deepen the sovereign debt market.
- “There is a need to pool resources from external sources to complement domestic issuances and bridge infrastructure funding gaps,” the President added. “Expanding Sukuk to the international market will open new opportunities and attract diversified investors to Nigeria’s economy.”
President Tinubu urged the Senate to approve both the $2.35 billion external borrowing and the $500 million Sovereign Sukuk issuance to maintain fiscal stability, boost investor confidence, and advance Nigeria’s infrastructure and economic growth goals.
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