Pres. Tinubu Seeks Lawmakers’ Approval to Raise $2.8bn for Budget and Infrastructure.
President Bola Ahmed Tinubu has written to the House of Representatives seeking approval to raise $2.347 billion from the international capital market to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
He also requested authorization to issue a $500 million debut sovereign Sukuk to fund critical infrastructure.
The letter, read by Speaker Abbas Tajudeen during Tuesday’s plenary, stated that the request aligns with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003.
Tinubu explained that the borrowing would fund provisions in the 2025 Appropriation Act, refinance the $1.118 billion Eurobond due in November 2025, and expand access to diversified external financing. The 2025 budget includes N9.28 trillion in new borrowings to cover the fiscal deficit, with N1.84 trillion ($1.229 billion) set aside for external loans.
The President asked the House to approve raising the funds through options such as Eurobond issuance, bridge financing, loan syndication, or borrowing from international financial institutions. He said the plan would help “avoid default” and align with global best practices.
Tinubu noted that the external capital to be raised—$1.229 billion for new borrowing and $1.118 billion for refinancing—totals $2.347 billion. He added that the government’s primary strategy is to issue Eurobonds, with terms determined by prevailing market conditions.
The Finance Ministry and Debt Management Office would work with transaction advisers to secure favorable terms.
In a separate request, Tinubu sought approval to issue a $500 million international Sukuk, modeled after Nigeria’s domestic Sukuk programme that has raised over N1.39 trillion since 2017 for infrastructure. He said the debut Sukuk would attract new investors, diversify funding sources, and deepen Nigeria’s sovereign securities market.
President Bola Ahmed Tinubu has written to the House of Representatives seeking approval to raise $2.347 billion from the international capital market to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
He also requested authorization to issue a $500 million debut sovereign Sukuk to fund critical infrastructure.
The letter, read by Speaker Abbas Tajudeen during Tuesday’s plenary, stated that the request aligns with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003.
Tinubu explained that the borrowing would fund provisions in the 2025 Appropriation Act, refinance the $1.118 billion Eurobond due in November 2025, and expand access to diversified external financing. The 2025 budget includes N9.28 trillion in new borrowings to cover the fiscal deficit, with N1.84 trillion ($1.229 billion) set aside for external loans.
The President asked the House to approve raising the funds through options such as Eurobond issuance, bridge financing, loan syndication, or borrowing from international financial institutions. He said the plan would help “avoid default” and align with global best practices.
Tinubu noted that the external capital to be raised—$1.229 billion for new borrowing and $1.118 billion for refinancing—totals $2.347 billion. He added that the government’s primary strategy is to issue Eurobonds, with terms determined by prevailing market conditions.
The Finance Ministry and Debt Management Office would work with transaction advisers to secure favorable terms.
In a separate request, Tinubu sought approval to issue a $500 million international Sukuk, modeled after Nigeria’s domestic Sukuk programme that has raised over N1.39 trillion since 2017 for infrastructure. He said the debut Sukuk would attract new investors, diversify funding sources, and deepen Nigeria’s sovereign securities market.
Pres. Tinubu Seeks Lawmakers’ Approval to Raise $2.8bn for Budget and Infrastructure.
President Bola Ahmed Tinubu has written to the House of Representatives seeking approval to raise $2.347 billion from the international capital market to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
He also requested authorization to issue a $500 million debut sovereign Sukuk to fund critical infrastructure.
The letter, read by Speaker Abbas Tajudeen during Tuesday’s plenary, stated that the request aligns with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003.
Tinubu explained that the borrowing would fund provisions in the 2025 Appropriation Act, refinance the $1.118 billion Eurobond due in November 2025, and expand access to diversified external financing. The 2025 budget includes N9.28 trillion in new borrowings to cover the fiscal deficit, with N1.84 trillion ($1.229 billion) set aside for external loans.
The President asked the House to approve raising the funds through options such as Eurobond issuance, bridge financing, loan syndication, or borrowing from international financial institutions. He said the plan would help “avoid default” and align with global best practices.
Tinubu noted that the external capital to be raised—$1.229 billion for new borrowing and $1.118 billion for refinancing—totals $2.347 billion. He added that the government’s primary strategy is to issue Eurobonds, with terms determined by prevailing market conditions.
The Finance Ministry and Debt Management Office would work with transaction advisers to secure favorable terms.
In a separate request, Tinubu sought approval to issue a $500 million international Sukuk, modeled after Nigeria’s domestic Sukuk programme that has raised over N1.39 trillion since 2017 for infrastructure. He said the debut Sukuk would attract new investors, diversify funding sources, and deepen Nigeria’s sovereign securities market.
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