Tinubu’s Administration Seeks a $2.35 Billion Loan and a $500 Million Sukuk for Economic Revitalisation

Tinubu’s Administration Seeks a $2.35 Billion Loan and a $500 Million Sukuk for Economic Revitalisation.

By Flycable News

The Senate mandated the committee to report back within one week.

ABUJA — President Bola Tinubu has written to the Senate, seeking approval to raise $2.35 billion in external loans to partially finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds, as well as issue a $500 million sovereign Sukuk to fund infrastructure projects.

The letter, read on the Senate floor by President of the Senate Godswill Akpabio, outlines the government’s plan to bridge funding gaps, manage debt obligations, and attract new investors to Nigeria’s capital markets.

According to the President, the $2.35 billion borrowing includes new external loans of ₦1.843 trillion (about $1.229 billion at ₦1,500/$) to help finance the 2025 Appropriation Act and $1.118 billion to refinance Eurobonds issued in 2018, due for maturity in November 2025.

Senate President Akpabio has referred the request to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko (APC, Sokoto North), directing the panel to review the proposal and report back within one week.

In the letter, President Tinubu explained that the funds would be sourced through options in the International Capital Market (ICM), including Eurobonds, syndicated loans, bridge finance facilities, or direct borrowing from international financial institutions.

He noted that the 2025 Appropriation Act provides for ₦9.276 trillion in new borrowings to fund the budget deficit, of which ₦1.843 trillion (about $1.229 billion) is expected to come from external sources.

Tinubu said refinancing the maturing Eurobonds was standard practice in global debt markets and necessary to prevent default. “The plan is to refinance the maturing Eurobonds through Eurobond issuance, bridge finance, syndicated loans, or direct borrowing as needed,” he explained.

The president emphasised that Nigeria, as a regular participant in the ICM, remains well-positioned to raise the proposed amount, subject to market conditions. He added that the Federal Ministry of Finance and the Debt Management Office (DMO) would work with transaction advisers to secure the most favourable terms.

In a related request, President Tinubu sought approval to issue an inaugural stand-alone sovereign Sukuk of up to $500 million in the international capital market. This issuance may be backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which is part of the Islamic Development Bank (IsDB) Group.

He noted that Nigeria has successfully raised ₦1.392 trillion through domestic Sukuk issuances since 2017, funding major road and infrastructure projects nationwide. Expanding Sukuk issuance to international markets, he said, would mobilise additional funds for infrastructure, diversify the investor base, and deepen Nigeria’s sovereign debt market.

“There is a need to pool resources from external sources to complement domestic issuance and help bridge infrastructure funding gaps,” the president said. “It is also important to open new funding sources and diversify the investor base for the Federal Government.”

Tinubu urged the Senate to approve both the $2.35 billion external borrowing and the $500 million Sukuk issuance to maintain fiscal stability, sustain investor confidence, and advance Nigeria’s infrastructure and economic growth objectives.