Tinubu sukuk and external borrowing Nigeria
The National Assembly of Nigeria, through its lower chamber, the House of Representatives, has approved President Bola Tinubu’s request for fresh external borrowing and a landmark debt instrument issuance. According to authoritative sources, the approval covers up to $2.85 billion in new foreign borrowing, along with authorisation for a $500 million sovereign sukuk an Islamic-finance bond to be issued on the international market.
In the letter sent to the House, President Tinubu sought permission under the provisions of the Debt Management Office (Establishment, Etc.) Act to raise approximately $2.3 billion in new capital, and also to refinance maturing Eurobonds worth about $1.1 billion due in November 2025. The sukuk issuance is positioned as Nigeria’s first debut standalone sovereign Islamic-compliant bond in the international capital markets, and reflects a push to diversify the country’s funding sources and reduce dependence on traditional Eurobond instruments.
The purpose advanced by the government is to partially finance Nigeria’s 2025 budget deficit and meet imminent debt obligations. The treasury and finance ministry officials have also emphasised that this borrowing strategy will be explored through options such as Eurobond issuance, syndicated loans, bridge financing, or direct borrowings from international financial institutions.
The approval underlines both an increasing sense of urgency within the government to access external capital amid fiscal pressures, and a broader shift toward infrastructure-friendly financing options such as sukuk, green bonds and diaspora bonds tools which the Treasury believes may offer more favourable terms compared to conventional sovereign Eurobonds.
