President Bola Ahmed Tinubu has asked the House of Representatives to approve an external borrowing plan of $2.3 billion to help cover Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.
The request was contained in a letter read on the House floor on Tuesday by Speaker Abbas Tajudeen. According to the letter, Tinubu is seeking a total of $2,347,465,000 in foreign loans — made up of $1.2 billion for the 2025 budget and $1.1 billion to refinance existing Eurobond debts.
In his message, Tinubu explained that while the federal government has made progress using Sukuk bonds in the local capital market to fund major infrastructure projects, there’s still a need to attract foreign funding to close the financing gap.
“The federal government has successfully raised N1.39 trillion through Sukuk between September 2017 and May 2025 to support key road infrastructure projects,” the letter stated. “However, we must now source funds externally to complement domestic financing, diversify investors, and deepen Nigeria’s capital markets.”
The president proposed that the funds be raised through various options, including Eurobond issuance, bridge financing, loan syndication, or direct borrowing from international financial institutions.
Tinubu also asked the lawmakers to approve the issuance of a stand-alone sovereign Sukuk bond worth up to $500 million, which may be backed by a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) — a member of the Islamic Development Bank Group.
According to him, “If the ICIEC guarantee is used, about 25% of the proceeds would be directed toward repaying more expensive debts, while the remainder would fund identified infrastructure projects.”
In summary, Tinubu requested that the House authorize:
1. The external borrowing of $2.35 billion, split between new loans for the 2025 budget and refinancing maturing Eurobonds.
2. The issuance of a sovereign Sukuk for up to $500 million, with or without ICIEC’s credit support.
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This request is part of a broader borrowing plan by the Tinubu administration aimed at sustaining government spending and development projects. Earlier in 2025, the Senate approved a $21.5 billion borrowing framework for 2025–2026 to fund key sectors like infrastructure, agriculture, health, and education. In July, lawmakers also approved a $347 million loan and ₦757 billion in pension bond arrears.
However, critics have warned that the country’s rising debt levels could pose serious risks. According to the Debt Management Office (DMO), Nigeria’s total public debt had already exceeded $108 billion by mid-2025, sparking concerns over what some have called a “dangerous fiscal trend.”
