Tinubu Seeks Lawmakers’ Approval to Raise $2.8 Billion from Global Capital Markets, Refinance Eurobonds
President Bola Tinubu has formally asked the National Assembly to approve Nigeria’s plan to raise $2.847 billion from the international capital market to support the 2025 budget and refinance existing debt. In a letter addressed to House Speaker Tajudeen Abbas, Tinubu said the funds will be sourced through Eurobonds, syndicated loans, bridge financing, or multilateral borrowings. The move comes as the government seeks to maintain fiscal stability amid a tightening global financial environment.
Tinubu’s request details two key components: $1.229 billion in new external borrowing to support the 2025 Appropriation Act, and $1.118 billion to refinance Nigeria’s maturing Eurobond, due in November 2025. The refinancing, the President explained, will prevent a possible default and ensure compliance with international best practices in sovereign debt management. He added that the Ministry of Finance and the Debt Management Office (DMO) will work with advisers to secure the most favourable financing terms, based on Nigeria’s current Eurobond yields ranging from 6.8% to 9.2%.
In addition to the loan request, Tinubu is seeking approval to issue a $500 million debut Sovereign Sukuk in the international market — a first for Nigeria. The Sukuk, which may include a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), aims to attract Islamic investors and diversify the country’s funding sources. Tinubu noted that Nigeria had already raised N1.392 trillion domestically through Sukuk bonds since 2017 to finance major road projects, and an international issuance would deepen investor confidence while bridging infrastructure financing gaps.
Meanwhile, the Nigerian National Petroleum Company Limited (NNPC) has submitted formal responses to 19 audit questions raised by the Senate Committee on Public Accounts regarding discrepancies of ₦210 trillion in its financial statements between 2017 and 2023. Committee Chairman, Senator Aliyu Wadada, confirmed the submission on Tuesday, noting that the committee will review the company’s responses before taking a position. He clarified that the probe is a constitutional oversight function, not an accusation of theft, aimed at resolving audit inconsistencies flagged by the Auditor-General.
Tinubu’s international financing plan comes as African economies show signs of recovery, with the World Bank forecasting 3.8% growth for Sub-Saharan Africa in 2025, driven by stabilizing inflation and foreign exchange rates. Nigeria’s economic reforms, including the removal of fuel subsidies, foreign exchange unification, and tax restructuring, have drawn renewed investor interest. The African Development Bank (AfDB) has also pledged a $500 million budget support loan to Nigeria this year, praising Tinubu’s “bold and aggressive macroeconomic reforms.” Analysts say the new funding drive could strengthen Nigeria’s fiscal resilience but caution that debt sustainability will depend on disciplined implementation and improved revenue generation.
source: arise