Tinubu Seeks National Assembly’s Approval To Borrow $2.35bn, Issue $500m Sovereign Sukuk

President Bola Tinubu has asked the House of Representatives to approve plans to borrow $2.35 billion in external loans to help fund part of Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.

He also requested approval to issue a $500 million sovereign sukuk in the international capital market to fund major infrastructure projects and expand Nigeria’s financing options.

The president’s request was contained in a letter sent to the Speaker of the House, Tajudeen Abbas, and read during plenary on Tuesday.

According to Tinubu, the borrowing request is in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which requires legislative approval for all new loans and refinancing plans.

Tinubu explained that out of the $2.35 billion, $1.23 billion will go toward covering part of the 2025 budget deficit, while $1.12 billion will be used to refinance a Eurobond maturing on November 21.

“The plan is to refinance the maturing Eurobonds through the issuance of Eurobonds, bridge finance from bookrunners, loan syndication, or direct borrowing from international financial institutions to avoid default,” the letter reads.

Tinubu noted that the funds would be sourced through one or a mix of financial instruments, depending on market conditions, and that the new Eurobond pricing would align with current yields on Nigeria’s existing international bonds, which range from 6.8 to 9.3 percent.

On the proposed $500 million sovereign sukuk, the president said it would help diversify Nigeria’s investor base and deepen the country’s securities market. The proceeds, he added, would be used to finance key infrastructure projects.

He recalled that the federal government had previously raised about N1.39 trillion through domestic sukuk between 2017 and 2025, which was used for road and infrastructure development.

President Tinubu said the planned international sukuk would complement these domestic efforts.

“It is imperative to open new sources of funding for the federal government and to deepen the FGN securities market,” he said.

“The proposal is for the house of representatives to approve the issuance of a stand-alone debut Sovereign Sukuk with or without 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.”

According to the president, up to 25 percent of the sukuk proceeds may be used to pay off expensive existing debts, while the rest will go into infrastructure development.

Tinubu urged the House to approve the plan promptly, assuring lawmakers that his administration remains committed to transparency, fiscal responsibility, and prudent debt management.

KanyiDaily recalls that the First Lady, Oluremi Tinubu, recently revealed that her 65th birthday initiative raised over N20 billion to help complete the National Library in Abuja.