President Bola Tinubu has formally requested the House of Representatives’ consent to secure external financing amounting to $2.347 billion.
This sum includes fresh external borrowing of ₦1.843 trillion (calculated at the budget exchange rate of $1 = ₦1,500) as outlined in the 2025 Appropriation Act, intended to partially cover the budget shortfall and to refinance Eurobonds worth $1.118 billion.
The funds are proposed to be raised through various avenues in the International Capital Market (ICM), such as issuing Eurobonds, arranging syndicated loans, obtaining bridge financing from bookrunners, or direct loans from international financial institutions.
In a letter addressed to Speaker Abbas Tajudeen and presented during Tuesday’s plenary session, Tinubu also requested the House’s approval to launch a standalone inaugural Sovereign Sukuk issuance of up to $500 million in the ICM, with the option of credit enhancement (guarantee).
Detailing the new external borrowing framework within the 2025 Appropriation Act, Tinubu highlighted: “The Act allocates ₦9.276 trillion for new borrowings to partly finance the 2025 budget deficit, of which ₦1.843 trillion (approximately $1.229 billion at the budget exchange rate) is earmarked for external borrowing.”
He invited the House to authorize the government to raise these funds through any combination of the following methods: Eurobond issuance, bridge financing from bookrunners, loan syndication, or direct borrowing from international financial institutions.
Furthermore, Tinubu noted that Eurobonds totaling $1.118 billion, issued on November 21, 2018, with a 7-year maturity, are set to mature on November 21, 2025.
The plan involves refinancing these maturing Eurobonds through similar instruments-Eurobond issuance, bridge finance, syndicated loans, or direct borrowing-to prevent default, a common practice in global debt markets including the ICM.
He emphasized that the House’s resolution would empower the Federal Government of Nigeria (FGN) to proceed with this refinancing strategy.
Combining the new borrowing and refinancing needs, the total amount proposed for raising in the ICM stands at $2.347 billion, through any of the aforementioned financial instruments or a mix thereof, pending the House’s approval.
While all options remain under consideration, the primary focus is on Eurobond issuance, leveraging Nigeria’s established presence as a regular Eurobond issuer in the ICM. However, since Eurobond terms are tinubu/” title=”Real reason we removed fuel subsidy —…”>market-driven, final conditions will depend on prevailing market dynamics at the time of issuance.
The Federal Ministry of Finance and the Debt Management Office will collaborate with transaction advisers to negotiate the most advantageous terms. Indicative terms for the $2.347 billion Eurobond issuance are provided in an annexure. Pricing will reflect current yields on Nigeria’s Eurobonds, with maturity periods influenced by investor demand, pricing, and the Debt Management Office’s liability management strategy.
Additionally, the letter urged the House to approve the issuance of a debut standalone Sovereign Sukuk of up to $500 million in the ICM, with or without credit enhancement from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), part of the Islamic Development Bank Group.
Highlighting the rationale, Tinubu pointed out the Federal Government’s success in issuing Sukuk domestically to fund vital infrastructure projects, having raised ₦1.393 trillion between September 2017 and May 2025 for road development.
He stressed the importance of supplementing domestic Sukuk issuance with external funding to close infrastructure financing gaps, diversify funding sources, broaden the investor base, and deepen the government securities market.
In conclusion, Tinubu respectfully requested the House of Representatives to pass a resolution authorizing the raising of $2.347 billion in external capital-comprising $1.229 billion in new borrowing and $1.118 billion for Eurobond refinancing-via Eurobond issuance, bridge finance, loan syndication, or direct borrowing from international financial institutions.
He also sought approval for the issuance of a debut standalone Sovereign Sukuk of up to $500 million, with or without credit enhancement from ICIEC.
