Tinubu Seeks NASS Approval for $2.85bn External Borrowing, $500m Sovereign Sukuk

President Bola Tinubu has formally requested the approval of the National Assembly to secure $2.85 billion in external financing to support the 2025 budget and critical infrastructure projects.

The request was contained in a letter addressed to Speaker of the House of Representatives, Tajudeen Abbas, and read on the floor of the House on Tuesday.

According to the letter, the borrowing plan includes $1.23 billion (approximately ₦1.84 trillion) already captured in the 2025 Appropriation Act to part-finance the budget deficit, and $1.12 billion earmarked to refinance a Eurobond maturing on November 21, 2025.

In addition, President Tinubu is seeking parliamentary approval to issue a debut $500 million sovereign sukuk in the International Capital Market (ICM) to further fund infrastructure development and diversify Nigeria’s sources of financing.

The President cited Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new external borrowing and refinancing arrangements.

“The Federal Government has recorded considerable success with the issuance of Sukuk in the domestic capital market for the development of critical infrastructure across the country,” the letter stated. It noted that between September 2017 and May 2025, the Debt Management Office (DMO) raised ₦1.39 trillion through domestic Sukuk to fund road infrastructure projects.

President Tinubu emphasized the need to tap into external financial markets to bridge Nigeria’s infrastructure funding gaps and to expand the government’s investor base. He explained that the funds would be raised using one or a combination of instruments, including Eurobonds, syndicated loans, or bridge financing facilities, depending on prevailing market conditions.

The President added that pricing for the Eurobond issuance would be benchmarked against Nigeria’s existing international bonds, which currently yield between 6.8% and 9.3%, depending on maturity.

He described the proposed $500 million sovereign Sukuk as a strategic move to deepen the federal government securities market and attract a more diverse range of investors, while supporting the development of critical national infrastructure.