President Bola Tinubu has submitted a request to the House of Representatives for approval of a $2.347 billion external loan and a $500 million sovereign Sukuk to address Nigeria’s 2025 budget deficit and refinance a $1.118 billion Eurobond maturing in November 2025.
The request, read by Speaker Tajudeen Abbas during Tuesday’s plenary, aligns with the Debt Management Office (DMO) Act and aims to bolster fiscal stability.
The $2.35 billion loan, comprising $1.229 billion in new borrowing, will be sourced through Eurobonds, syndicated loans, or international institutions, depending on market conditions, to fund critical infrastructure and services.
The $500 million Sukuk, Nigeria’s first in the global market, may include credit enhancement from the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) and will partly refinance high-cost debts while funding projects like roads and bridges.
Tinubu emphasized that refinancing the 2018 Eurobond, issued at 7.625% interest, is critical to avoid default and maintain Nigeria’s credibility in global markets.
The broader 2025 budget includes $9.27 billion in new borrowings, with $1.84 billion allocated for external loans.
The Ministry of Finance and DMO will secure favorable terms, building on Nigeria’s domestic Sukuk issuances that have raised ₦1.39 trillion since 2017.
While the move supports Tinubu’s Renewed Hope Agenda, analysts caution that Nigeria’s ₦121 trillion debt stock requires careful management.
The House is set to debate the proposal soon, following the Senate’s earlier approval of a $21 billion borrowing plan for 2025 priorities.
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