President Tinubu wants the National Assembly to approve a total of $2.347 billion in external capital to finance part of the 2025 budget deficit, refinance maturing Eurobonds, and issue debut sovereign Sukuk in the international capital market
President Bola Tinubu has written to the House of Representatives seeking its approval to raise a total of $2.347 billion in external borrowings to finance part of the 2025 budget deficit, refinance maturing Eurobonds, and issue Nigeria’s first-ever sovereign Sukuk in the international capital market.
In a letter dated September 22, 2025, and addressed to the Speaker of the House, Rep. Tajudeen Abbas, the president requested the approval in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003, to enable the federal government to implement new external borrowing as provided in the 2025 Appropriation Act, and to manage the nation’s maturing debts responsibly.
According to the letter, Tinubu requested legislative approval to:
- Implement a new external borrowing of ₦1.84 trillion (about $1.229 billion) to part-finance the 2025 budget deficit.
- Refinance $1.118 billion Eurobonds maturing on November 21, 2025, to avoid default.
- Access an aggregate external capital of $2.347 billion through any combination of Eurobond issuance, syndicated loans, bridge financing, or direct borrowing from international financial institutions.
- Issue a stand-alone debut Sovereign Sukuk of up to $500 million in the international capital market, with or without a credit guarantee.
President Tinubu explained that the 2025 Appropriation Act provided for ₦9.27 trillion in new borrowings to finance the budget deficit — of which ₦7.43 trillion is domestic borrowing and ₦1.84 trillion is external.
He noted that Nigeria’s previous Eurobonds specifically the 7.625% $1.118 billion Eurobond issued in November 2018 — will mature in November 2025. “The plan is to refinance the maturing Eurobonds through issuance of Eurobonds, bridge finance facility, loan syndication, or direct borrowing from international financial institutions to avoid default,” Tinubu stated.
The President assured lawmakers that the Federal Ministry of Finance (FMF) and the Debt Management Office (DMO) would work closely with transaction advisers to secure the most favorable terms and conditions, noting that the pricing of new Eurobonds would depend on prevailing market yields.
Citing Nigeria’s consistent participation in the Eurobond market, Tinubu said the country “could raise the proposed amount, subject to market conditions,” and provided indicative yields from Bloomberg showing returns ranging between 6.8 and 9.3 percent on existing Nigerian Eurobonds as of September 8, 2025.
On the proposed $500 million Sovereign Sukuk, the President said the move is aimed at diversifying Nigeria’s funding sources and deepening the government securities market. He highlighted the success of domestic Sukuk issuances, which have raised ₦1.39 trillion since 2017 to finance road infrastructure across the country.
“There is a need to pool resources from external sources to complement domestic issuance and help bridge infrastructure funding gaps,” Tinubu wrote.
He further disclosed that the debut international Sukuk may be backed by a credit enhancement (guarantee) from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group. If the guarantee is adopted, 25 percent of the proceeds will be used to repay more expensive debts, while the remainder will finance pre-identified infrastructure projects.
Concluding the letter, the President appealed for the timely approval, expressing confidence that the borrowing plan would help the government meet its fiscal obligations while maintaining macroeconomic stability.
“While I look forward to the timely issuance of the Resolution by the House of Representatives, please accept, Rt. Honourable Speaker, the assurances of my highest regards,” the President wrote.
Upon reading the president’s request during Tuesday’s plenary the Speaker of the House thereafter referred it to the House Committees on Aids, Loans and Debt Management for further legislative consideration.
