The Federal Government of Nigeria has revealed plan to borrow $2.35 billion to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
In a letter by President Tinubu, addressed to the Speaker of the House of Representative, Tajudeen Abbas, the borrowing plan includes $1.23 billion (N1.84 trillion) provided for in the 2025 Appropriation Act to part-finance the budget deficit, and another $1.12 billion to refinance a eurobond maturing on November 21.
The President also wants the parliament to approve his plan to issue a $500 million debut sovereign sukuk in the International Capital Market (ICM) to fund infrastructure projects and diversify Nigeria’s sources of financing.
The external borrowing is backed by provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new loans and refinancing arrangements.
The presidents letter stated thus:
“The Federal Government has recorded considerable success in the issues of Sukuk in the domestic capital market for the development of critical infrastructure projects across the country. Between September 2017 and May 2025, the DMO has raised N1.39 trillion through Sukuk in the domestic capital market to fund critical road infrastructure projects.”
“There is a need to pull resources from external sources to complement domestic issues to help bridge infrastructure funding gaps.
“And two, it is imperative to open new sources of funding for the federal government of Nigeria and thereby diversify the investor base as well as deepen the federal government security markets.”