President Bola Ahmed Tinubu has formally written to the House of Representatives seeking approval to raise $2.347 billion from the international capital market and issue a debut $500 million sovereign Sukuk to part-finance Nigeria’s 2025 budget and refinance maturing Eurobonds.
The request, which was read during Tuesday’s plenary by Speaker Abbas Tajudeen, was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003.
Tinubu explained that the borrowing is necessary to implement provisions of the 2025 Appropriation Act, bridge the fiscal deficit, and refinance Nigeria’s $1.118 billion Eurobond, which matures on November 21, 2025.
According to the President, the 2025 budget makes provision for ₦9.28 trillion in new borrowings, with ₦1.84 trillion (approximately $1.229 billion) to come from external sources.
“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, loan syndication, or direct borrowing from international financial institutions,” Tinubu wrote.
He stressed that refinancing the Eurobond was necessary to “avoid default” and to align with international best practices in debt management. While all financing options would be considered, the government’s primary plan, he said, is to issue Eurobonds, building on Nigeria’s track record as a regular participant in the global debt market.
“The terms and conditions can only be determined at the time of the transactions and will be subject to prevailing market conditions,” Tinubu noted, adding that the Ministry of Finance and the Debt Management Office would work with transaction advisers to secure the best deals.
In a related request, Tinubu also sought the House’s approval to float a stand-alone debut Sovereign Sukuk worth up to $500 million on the international market. He said the move would replicate Nigeria’s successful domestic Sukuk programme, which since 2017 has raised over ₦1.39 trillion for infrastructure, particularly roads.
According to him, the international Sukuk will diversify Nigeria’s funding sources, broaden its investor base, and further deepen the sovereign securities market
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