FG seeks NASS approval for $2.34bn external capital, $500m sukuk
By Seun Ibiyemi
President Bola Tinubu has formally petitioned the House of Representatives for legislative approval to raise a total of $2.34 billion in external capital, a move critical to funding the 2025 budget deficit and executing key debt management strategies.
Speaker of the House of Representatives, Hon. Abba Tajudeen, read the president’s request on the floor of the House on Tuesday, stating that the proposal was in accordance with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.
According to the letter, the total capital to be raised amounts to $2.347 billion, comprising $1.229 billion in new external borrowing provided for in the 2025 Appropriation Act, and $1.118 billion earmarked for refinancing Eurobonds maturing in November.
Tinubu explained that the borrowing would be sourced through a mix of Eurobond issuance, loan syndications, bridge financing, and direct loans from international financial institutions, depending on prevailing market conditions.
He said the new financing aligns with the government’s fiscal strategy to support infrastructure development, refinance high-cost debts, and sustain investor confidence in Nigeria’s credit market.
In addition, the president sought parliamentary authorisation to issue a $500 million debut sovereign Sukuk in the international capital market the first of its kind for Nigeria.
Tinubu noted that the Sukuk issuance would diversify Nigeria’s funding sources, attract ethical investors, and complement domestic Sukuk programmes that have raised over ₦1.39 trillion since 2017 for critical road projects nationwide.
“The proposed Sukuk may be issued with or without a credit enhancement guarantee from the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group,” the President said.
He added that up to 25 per cent of the Sukuk proceeds could be used to refinance high-cost government debts, while the remaining funds would be channelled into identified infrastructure projects.
Tinubu assured that refinancing the maturing $1.118 billion Eurobonds due in November was a standard debt management practice designed to maintain market credibility and avoid default.
He also affirmed that the Federal Ministry of Finance and the DMO would work with transaction advisers to secure the most favourable market terms and conditions for the issuance