Dalena Reporters | Abuja | October 13, 2025
The Federal Government of Nigeria has announced plans to raise a total of $2.8 billion in fresh external financing as part of efforts to stabilize the nation’s economy and bridge rising budget deficits. The move, which has already been forwarded to the National Assembly for legislative approval, includes a $500 million debut sovereign sukuk in international markets and an additional $2.3 billion in new foreign loans.
President Bola Ahmed Tinubu disclosed the proposal in an official communication addressed to Senate President Godswill Akpabio and Speaker of the House of Representatives Tajudeen Abbas. According to the letter, the borrowing request is part of the 2025 National Borrowing Plan designed to fund critical infrastructure and refinance existing debts.
“The proposed sovereign sukuk issuance will allow Nigeria to diversify its funding sources, deepen access to non-interest Islamic finance, and attract investment from new markets,” Tinubu stated in the letter.
Purpose of the Borrowing
According to government documents obtained by Dalena Reporters:
| Component | Amount | Purpose |
|---|---|---|
| Sovereign Sukuk | $500 million | Infrastructure & budget financing |
| External Loans | $2.3 billion | Budget deficit + Eurobond refinancing |
| Total | $2.8 billion | National Borrowing Programme |
Part of the borrowing—approximately $1.118 billion—will be used to refinance Eurobonds maturing in November 2025, thereby preventing default risks and preserving Nigeria’s credit reputation in global markets.
Why Sukuk?
The sukuk instrument, unlike conventional bonds, complies with Islamic finance principles that prohibit interest. Instead, sukuk is structured as an investment backed by tangible assets. Nigeria has successfully used domestic sukuk programmes since 2017, with over ₦1.39 trillion raised so far for major road and transport projects.
Analysts Express Concern
However, economic analysts warn that the new borrowing could further increase Nigeria’s external debt burden, which stood at over $43 billion as of mid-2025.
Financial analyst Chinedu Aja reportedly told Dalena Reporters:
“Government must show clear transparency in how these funds will be used. Borrowing without productive economic return will only mortgage the future of Nigerians.”
Opposition Demands Clarification
Members of the opposition in the National Assembly have already raised queries about repayment plans, interest terms, and the total impact on debt servicing, which currently consumes over 70% of federal revenue.