President Bola Ahmed Tinubu has formally sought the National Assembly’s approval for a $2.3 billion external loan, according to a letter sent to the legislature. This request is part of a broader plan to raise $2.8 billion through combined borrowing and a debut sovereign sukuk issuance.
Lens News gathered that, the fresh funds are intended to bridge the 2025 budget deficit and refinance maturing Eurobonds due in November. The government is also proposing a $500 million sovereign sukuk as its first international Islamic finance instrument.
Finance Minister Wale Edun explained that the administration is prioritising cheaper financing options such as green bonds, sukuk, and diaspora bonds over conventional Eurobonds, which tend to carry higher borrowing costs.
Tinubu’s return to international bond markets would mark a significant step, as Nigeria has not issued new external debt in 2025. The plan anticipates multiple modes of borrowing: Eurobonds, syndicated loans, bridge financing, or direct borrowing from global banks.
Stakeholders say the proposal underscores growing urgency to stabilise Nigeria’s public finances amid economic pressures, debt servicing demands, and dwindling domestic funding options. The National Assembly’s response and the terms of the borrowing will be closely watched by investors and credit rating agencies.
