Nigeria is preparing to issue its first global sovereign sukuk and secure new external loans totaling about $2.8 billion to support its 2025 budget and refinance maturing debt. President Bola Tinubu has asked parliament to approve $2.3 billion in new foreign loans alongside a $500 million sukuk issuance, part of a broader strategy to diversify the country’s funding sources, Reuters reported.
Finance Minister Wale Edun said the government is pursuing lower-cost borrowing options such as green bonds, sukuk, and diaspora bonds to reduce its reliance on Eurobonds. Nigeria has yet to tap the international capital market in 2025, and the final mix of instruments will depend on prevailing global market conditions and investor appetite, Vanguard Nigeria noted.
The sukuk, which would mark Nigeria’s debut Islamic bond in the global market, could feature credit enhancements from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). Officials have also indicated that the issuance may proceed without such guarantees if conditions remain favorable. The funds will be partly used to refinance Nigeria’s $1.1 billion Eurobond due in November 2025, Reuters stated.
Analysts view the move as a step toward restoring fiscal confidence and expanding Nigeria’s access to diverse international funding channels. However, they caution that maintaining investor trust will depend on disciplined debt management, stable macroeconomic policy, and careful monitoring of global interest rate trends that could affect borrowing costs and currency stability.
