President Bola Tinubu has approved a 15% fuel import tariff, a move the government says will protect local refineries and drive energy independence. Critics warn it could push pump prices above ₦1,000 per litre. (Photo: State House/Presidency)
President Bola Ahmed Tinubu has asked the House of Representatives to approve the Federal Government’s plan to raise two point three four billion dollars in external capital to fund part of the 2025 budget deficit and refinance maturing Eurobonds.
The President’s request was contained in a letter read on the floor of the House on Tuesday by Speaker Tajudeen Abbas, in line with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.
Breakdown of the Borrowing Plan
According to the letter, the external capital to be raised totals two point three four seven billion dollars, comprising one point two two nine billion dollars in new borrowing for the 2025 Appropriation Act and one point one one eight billion dollars to refinance Eurobonds maturing in November 2025.
The funds, Tinubu explained, will be sourced through a mix of Eurobond issuance, syndicated loans, bridge financing, and direct borrowing from international financial institutions, depending on market conditions.
He said the move forms part of the government’s broader fiscal strategy to strengthen infrastructure financing, manage debt obligations, and preserve investor confidence in Nigeria’s credit market.
$500 Million Debut Sovereign Sukuk
In addition, President Tinubu requested parliamentary approval for the issuance of a five hundred million dollar sovereign Sukuk — Nigeria’s first-ever international Islamic bond.
He noted that the Sukuk would help diversify Nigeria’s funding sources, attract ethical investors, and complement domestic Sukuk programmes that have raised over one trillion, three hundred and ninety billion naira since 2017 for key road projects nationwide.
Under the proposal, up to 25 percent of the proceeds will be used to refinance high-cost government debts, while the remainder will fund priority infrastructure projects.
The Sukuk may also be issued with or without a credit enhancement guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group.
Government’s Justification
President Tinubu emphasized that refinancing the one point one one eight billion dollar Eurobonds maturing in 2025 is a standard debt management practice aimed at avoiding default and maintaining Nigeria’s credibility in global markets.
He assured lawmakers that the Federal Ministry of Finance and the DMO would collaborate with transaction advisers to secure the most favorable market terms before issuing the bonds.
“The proposal seeks the House’s approval for the Federal Government to raise external capital and issue the debut sovereign Sukuk accordingly,” Tinubu stated.
Ghanaian Lawmakers Visit National Assembly
Meanwhile, the House of Representatives welcomed a delegation of Ghanaian parliamentarians on a one-week observation program at the National Assembly, coinciding with Nigeria’s 65th Independence anniversary.
Speaker Abbas received the delegation, which included Hon. Godfrey Kini, Hon. Lorencia Zeromu, Hon. Akwasi Gyengfi Oyinna, and Mrs. Gifi, Principal Assistant Clerk of the Ghanaian Parliament, and wished them a fruitful visit.
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