Tinubu Seeks Fresh $2.8bn Loans, Debt Refinance to Plug 2025 Budget Gaps

By Franklin Adole

President Bola Ahmed Tinubu has requested the House of Representatives’ approval for new external borrowings and debt refinancing totalling $2.3 billion, along with the issuance of a $500 million debut sovereign Sukuk in the international capital market.

The request was contained in a letter read on the House floor by Speaker Tajudeen Abbas, seeking legislative approval in accordance with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.

Tinubu explained that the borrowing plan is designed to fund provisions of the 2025 Appropriation Act, refinance maturing Eurobonds, and expand Nigeria’s funding sources through Islamic finance instruments. He noted that the 2025 budget earmarks $9.27 billion in new loans to cover the fiscal deficit, with $1.84 billion (₦1.23 trillion at ₦1,500/$) expected from external sources.

The president urged lawmakers to authorise the Federal Government to raise funds through any of the following: Eurobond issuance, loan syndication, bridge financing from book runners, or direct borrowing from international financial institutions.

Tinubu also disclosed that Nigeria’s $1.118 billion Eurobond, issued in 2018 at 7.625% and due in November 2025, would be refinanced to prevent default — a move he described as “standard practice in global debt markets.” He said the refinancing through Eurobonds or syndicated loans would help maintain debt sustainability and strengthen investor confidence.

The president pointed to Nigeria’s “considerable success” with domestic Sukuk issuances, which have raised ₦1.39 trillion since 2017 for critical infrastructure, mainly roads. The proposed international Sukuk, he said, would bridge the nation’s infrastructure financing gap and attract new investors.

“If the ICIEC credit guarantee is utilised, 25% of the proceeds will go toward repaying costlier debt, while the balance will fund identified infrastructure projects,” Tinubu stated.

He assured the House that the Federal Ministry of Finance and the Debt Management Office would work with transaction advisers to secure the best possible terms and pricing for all capital-raising efforts, subject to market conditions.