President Bola Ahmed Tinubu has formally requested the approval of the National Assembly for a fresh $2.3 billion external loan and the issuance of a $500 million sovereign Sukuk, aimed at financing Nigeria’s 2025 budget and refinancing maturing debt obligations.
In a letter read by Speaker Tajudeen Abbas during plenary, the President emphasized that the borrowing is essential to implement the provisions of the 2025 Appropriation Act, manage Nigeria’s debt profile, and support critical infrastructure development. The request aligns with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which mandate legislative approval for external borrowings.
The loan will be sourced through a mix of Eurobonds, syndicated loans, bridge financing, and multilateral credits, with the goal of achieving lower borrowing costs and minimizing financial risks. President Tinubu assured lawmakers that the Ministry of Finance and the Debt Management Office will collaborate with experienced advisers to secure favorable terms amid volatile global market conditions.
The proposed $500 million Sukuk marks Nigeria’s debut in the global Islamic finance market. The government is considering a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) to enhance investor confidence. If utilized, 25% of the proceeds will be used to repay high-interest debt, while the remainder will fund pre-identified infrastructure projects.