President Bola Ahmed Tinubu has asked the House of Representatives to approve a plan to borrow $2.34 billion from external sources to fund part of the 2025 budget and refinance Nigeria’s maturing Eurobonds.
In a letter dated September 22, 2025, and read by Speaker Abbas Tajudeen during Tuesday’s plenary, the President said the borrowing is needed to cover part of the budget deficit and ensure Nigeria meets its debt obligations.
According to him, the request is in line with sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003. The plan includes a new external loan of about $1.23 billion (N1.84 trillion) provided in the 2025 Appropriation Act and another $1.12 billion to refinance Eurobonds maturing in November 2025.
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President Tinubu said the funds would be sourced through Eurobond issuance, loan syndications, bridge financing, or direct borrowing from international financial institutions.
He explained that refinancing the Eurobond, originally issued in 2018, would help Nigeria avoid default when it matures later this year.
The President also sought approval to issue a $500 million debut Sovereign Sukuk (an Islamic bond) in the international market. He said Nigeria has successfully raised over N1.39 trillion from domestic Sukuk issues since 2017 to fund road and infrastructure projects and now wants to explore international opportunities.
Tinubu added that the international Sukuk would help Nigeria attract new investors, access cheaper funding, and support major infrastructure projects. The facility may come with a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group.
He assured lawmakers that the Ministry of Finance and the Debt Management Office will work with financial advisers to secure the best terms for the borrowings, which will depend on market conditions at the time of issuance.