President Bola Tinubu has penned a letter to the House of Representatives seeking approval to borrow $2.347 billion external funds for the financing of the budget deficit for 2025 and the refinancing of Nigeria’s $1.118 billion Eurobond maturing in November 2025.
In his letter, read by Speaker Abbas Tajudeen during yesterday’s plenary session, Tinubu explained that the borrowing includes a new external loan of ₦1.843 trillion (approximately $1.23 billion at the budget exchange rate of ₦1,500 per dollar) as provided in the 2025 Appropriation Act.
The President added that the amount would be raised using any of the following instruments in the International Capital Market (ICM):
- Issuance of Eurobonds
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Loan syndications
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Standalone inaugural Sovereign Sukuk of up to $500 million from bookrunners under bridge finance facilities.
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Direct borrowing from international organizations.
Tinubu also requested parliamentary approval for the issuance of a standalone inaugural Sovereign Sukuk of up to $500 million in the ICM, with or without credit enhancement (guarantee).
He explained that the 2025 Appropriation Act approves ₦9.27 trillion new borrowings to cover financing the year’s budget deficit and part of which is the proposed external borrowing.
On the refinancing of Nigeria’s maturing Eurobonds, Tinubu said:
“Electronic Eurobonds of $1.118 billion (7.625% due November 2025 which were borrowed in the International Capital Market on November 21, 2018 will mature on November 21, 2025. The plan is to refinance them with new issues or other facilities so as not to default.”
The President added that the refinancing and the proposed new borrowings are in accordance with best practice debt management globally to maintain Nigeria’s credit rating and ensure fiscal responsibility.
