Tinubu Seeks N’Assembly Approval for $2.35bn Loan and $500m Sukuk

President Bola Tinubu has requested National Assembly approval for a $2.35 billion loan and a $500 million sovereign sukuk to address budget deficits and refinance Eurobonds. The loan will be used to finance the 2025 budget deficit and refinance Eurobonds maturing in November 2025.

Tinubu explained that the funds could be sourced through Eurobond issuance, syndicated loans, or direct borrowing. The sovereign sukuk would involve credit enhancement from the Islamic Corporation for Insurance and Export Credit.

The request aligns with the Debt Management Office Act, requiring legislative approval for external borrowing and refinancing. The proposal aims to secure necessary funds for economic development and infrastructure projects.