N igeria's President Bola Tinubu has formally requested parliament to approve $2.3 billion in new loans and authorize the issuance of a $500 million debut sovereign sukuk on international debt markets. This move, announced in a letter read to lawmakers on Tuesday, signals Nigeria's return to tapping global capital after a hiatus in 2025.
Finance Minister Wale Edun highlighted at an economic summit in Abuja that the government is prioritizing green bonds, sukuk, and diaspora bonds due to their lower cost compared with traditional Eurobonds. The government's strategy aims to leverage these instruments for both fiscal efficiency and investor appeal.
Last month, the head of Nigeria’s debt office indicated that up to $2.3 billion could be raised through international bonds before the end of the year, contingent on market conditions. Africa’s most populous nation last sold international bonds in December 2024 and has remained inactive in global markets in 2025 until now.
Analysts note that Nigeria's fiscal position has improved, supported by economic reforms introduced under President Tinubu. Credit rating agencies have responded positively, and the government hopes these efforts will lead to lower yields on future debt issuances.
According to Tinubu's letter, the new funds will partially finance the budget deficit and refinance Eurobonds maturing in November. Borrowing may occur through Eurobond markets, syndicated loans, bridge financing from bookrunners, or directly from international banks. The sukuk issuance may include credit enhancements from the Islamic Corporation, seeking to replicate the success of domestic sukuk in global markets.
Nigeria’s renewed engagement with global debt markets underscores its commitment to fiscal reform and investor confidence, while also addressing immediate budgetary requirements in a cost-effective manner.