President Bola Ahmed Tinubu has sought approval from the House of Representatives to borrow $2.35 billion in external capital.
The funds are intended to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The request was contained in a letter addressed to the Speaker of the House, Tajudeen Abbas, and read on the floor of the green chamber on Tuesday.
The President detailed that the external borrowing plan includes:
- $1.23 billion (N1.84 trillion) to part-finance the deficit provided for in the 2025 Appropriation Act.
- $1.12 billion to refinance a eurobond maturing on November 21.
The letter stated that the borrowing is backed by Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which requires legislative approval for such arrangements.
The President also requested parliamentary approval for his plan to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM).
The rationale for the sukuk issuance, according to the letter, is two-fold:
- To “pull resources from external sources to complement domestic issues to help bridge infrastructure funding gaps.”
- To “open new sources of funding for the federal government of Nigeria and thereby diversify the investor base as well as deepen the federal government security markets.”
The President noted that the Federal Government has already raised N1.39 trillion through Sukuk in the domestic market between September 2017 and May 2025 to fund critical road infrastructure projects.
Tinubu explained that the total funds would be raised through “one or a combination of instruments such as Eurobonds, loan syndications, or bridge financing facilities,” depending on prevailing market conditions.
He expects the pricing of the new Eurobonds to align with current yields on Nigeria’s existing bonds in the international market, ranging between 6.8 percent and 9.3 percent.
Join Informant Online WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaihFajBadmT29ufud2
To Publish Articles, News, Place Advert, Contact Informant Online With Email Link Below: informantonline.com.ng@gmail.com
