President Bola Ahmed Tinubu has sought the approval of the House of Representatives to secure a total of $2.35 billion from the international capital market and an additional $500 million through a debut Sovereign Sukuk to support the implementation of Nigeria’s 2025 budget and refinance maturing Eurobonds.
The request, presented by Speaker Abbas Tajudeen during Tuesday’s plenary, outlines a comprehensive borrowing strategy that combines Eurobond issuance and non-interest Islamic financing to expand the nation’s funding options.
Tinubu explained that the plan was made in accordance with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, and is aimed at actualizing the borrowing provisions of the 2025 Appropriation Act, refinancing the $1.118 billion Eurobond maturing in November 2025, and widening Nigeria’s access to diversified external credit.
According to him, the 2025 budget earmarks N9.28 trillion in new borrowings to bridge the fiscal deficit, with N1.84 trillion (about $1.23 billion) set aside for fresh external borrowing.
“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 President wrote.
He noted that the funds would be used to partly finance the 2025 budget deficit and refinance the 2018 Eurobond maturing in November 2025—moves he described as critical to prevent default and align with international best practices in debt management.
Tinubu added that the combined amount to be raised—$1.229 billion for new borrowing and $1.118 billion for refinancing—totals $2.347 billion, and that the final terms would depend on prevailing market conditions at the time of transaction.
He further assured that the Federal Ministry of Finance and the Debt Management Office (DMO) would work closely with financial advisers to secure the most favourable terms.
In a related proposal, Tinubu requested legislative approval to issue a stand-alone $500 million Sovereign Sukuk in the international capital market. This would mark Nigeria’s first international Islamic finance issuance, following the success of domestic Sukuk bonds that have raised over N1.39 trillion since 2017 for road and infrastructure development.
According to the President, the international Sukuk is expected to help diversify Nigeria’s investor base, open up new funding channels, and deepen the sovereign securities market.
This borrowing initiative comes amid growing concern over Nigeria’s rising debt profile. Data from the Central Bank of Nigeria (CBN) shows that the Tinubu administration spent about $9.9 billion on external debt servicing between June 2023 and August 2025.
Meanwhile, the Debt Management Office (DMO) reported that Nigeria’s public debt stood at N149.3 trillion as of March 31, 2025, up from N144.6 trillion recorded in December 2024.
The increase reflects a N4.4 trillion rise in domestic debt and an additional N350 billion in external obligations within the first quarter of 2025.
