Tinubu Seeks Lawmakers’ Approval To Borrow $2.35bn For Budget

President Bola Tinubu has asked the National Assembly to approve a fresh external borrowing of $2.35 billion to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobond obligations.

The request, contained in a letter to the Speaker of the House of Representatives, Tajudeen Abbas, was read on the floor of the green chamber on Tuesday. The president also sought parliamentary approval to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM) as part of efforts to fund critical infrastructure projects and diversify the country’s sources of financing.

Tinubu explained that the borrowing plan was guided by provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandate legislative consent for all new loans and refinancing programmes. He noted that the combined funding would strengthen the government’s fiscal position and ensure smooth management of existing debt obligations.

Financing Nigeria’s Fiscal Gaps

According to details in the president’s correspondence, the borrowing plan includes $1.23 billion (approximately ₦1.84 trillion) provided for in the 2025 Appropriation Act to partially finance the national budget deficit. An additional $1.12 billion will be directed toward refinancing an existing Eurobond due for maturity on November 21.

The president noted that since 2017, Nigeria has successfully deployed sukuk instruments in the domestic capital market to support key infrastructure projects. Between September 2017 and May 2025, the Debt Management Office (DMO) reportedly raised ₦1.39 trillion through domestic sukuk issuances, which have funded the rehabilitation of critical road networks across various states.

He said the success of domestic sukuk offerings had made it necessary to replicate the model on the international stage to attract foreign investors and deepen Nigeria’s government securities market. The proposed $500 million international sukuk, he explained, would complement local issuances and provide a new avenue for infrastructure funding.

New Borrowing Structure and Market Strategy

Tinubu further stated that the proposed $2.35 billion external financing could be raised through a mix of Eurobonds, syndicated loans, or bridge financing facilities, depending on prevailing global market conditions. The government expects the pricing of the new Eurobonds to align with the current yields on Nigeria’s existing bonds in the international market, which range from 6.8 percent to 9.3 percent depending on maturity.

The administration believes that the borrowing will not only help stabilize fiscal operations but also reposition the economy for sustainable growth through improved access to long-term development capital. The president emphasized that diversifying Nigeria’s funding base is essential to bridge persistent infrastructure gaps, support ongoing projects, and sustain macroeconomic reforms aimed at restoring investor confidence.

He added that the international sukuk issuance would attract a broader class of ethical investors and signal Nigeria’s commitment to innovative, non-interest financing mechanisms aligned with global trends.

Tinubu’s latest borrowing request comes amid rising public scrutiny over Nigeria’s growing debt profile, which analysts estimate to have exceeded ₦100 trillion by mid-2025. The administration maintains that borrowing remains an unavoidable instrument for bridging the infrastructure financing gap and stimulating economic expansion, especially as oil revenues fluctuate and domestic revenues remain below target.

Lawmakers are expected to deliberate on the president’s request in the coming days, after which the House and Senate may refer it to their respective Committees on Loans, Debts, and National Planning for further review before approval.

If approved, the $2.35 billion loan and the proposed $500 million sukuk will form part of Nigeria’s medium-term external financing framework for 2025, reflecting the government’s continued reliance on both conventional and non-conventional funding sources to execute its fiscal strategy.