From Victor Osula, Abuja
President Bola Tinubu has sought the approval of the National Assembly to secure $2.35bn in external loans and issue a $500m sovereign sukuk in the international capital market.
The request was contained in a letter read by Speaker of the House of Representatives, Tajudeen Abbas, during plenary on Tuesday.
According to the President, part of the proposed borrowing will be used to finance the 2025 budget deficit, while a portion will go toward refinancing a Eurobond maturing in November.
Tinubu explained that $1.23bn would be drawn under the 2025 Appropriation Act as new borrowing, while $1.12bn would be used to refinance the Eurobond due on November 21, 2025.
He stated that the funds could be raised through Eurobond issuance, bridge financing, syndicated loans, or direct borrowing from multilateral institutions.
On the $500m sovereign sukuk, the President said it could be structured with credit enhancement from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
He noted that 25 per cent of the proceeds would be used to refinance high-cost debt, while the remaining funds would support infrastructure development.
The request, he added, was made in accordance with Sections 21(1) and 27(1) of the Debt Management Office Act, which require legislative approval for external borrowing and refinancing.
The House is expected to consider the President’s request in the coming days.
