By Mercy Aikoye
President Bola Ahmed Tinubu has sought the approval of the National Assembly for a $2.3 billion external borrowing and debt refinancing.
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The President also sought approval for $500 million debut sovereign Sukuk in the international capital market.
The request was read on the floor of the House of Representatives by the Speaker, Hon. Tajudeen Abbas.
The amount to be borrowed is aimed at implementing provisions of the 2025 Appropriation Act and refinancing maturing Eurobonds.
According to the President, the 2025 budget provides for $9.27 billion in total new borrowings to finance the year’s fiscal deficit. Out of this, $1.84 billion is earmarked for external loans.
The President urged lawmakers to authorize the Federal Government to source the funds through various options, including Eurobonds, loan syndication, and direct borrowing from international financial institutions.
Nigeria’s $1.118 billion Eurobond, issued in 2018, will be refinanced to avoid default. “This is a standard practice in debt capital markets,” the letter noted.
The President also seeks approval to issue a standalone sovereign Sukuk of up to $500 million in the international market. The decision was inspired by the government’s success in domestic Sukuk issuances, which have raised ₦1.39 trillion since 2017.
“If the ICIEC credit guarantee is utilised, 25% of the proceeds will be used to repay relatively expensive debt obligations, while the balance will finance pre-identified infrastructure projects,” the President said.
He assured that the Federal Ministry of Finance and the DMO will work closely with transaction advisers to secure the most favourable terms and pricing.
“I look forward to the timely issuance of the House’s resolution,” President Tinubu said, expressing confidence that the country can successfully raise the proposed amounts.
