Nigeria’s parliament has approved a $2.85 billion foreign borrowing plan that includes the country’s first-ever international sukuk, marking a significant step in the government’s strategy to diversify funding sources and support infrastructure development.
According to Bloomberg, the approval followed President Bola Tinubu’s request to access external financing to help fund key projects under the 2025 budget. The funds will be sourced from a mix of multilateral institutions, commercial loans, and a debut dollar-denominated sukuk aimed at attracting investors from Islamic finance markets.
Lawmakers said the borrowing plan would focus on projects in transport, energy, and agriculture, while ensuring debt sustainability remains within manageable levels. “This move allows Nigeria to tap into new pools of capital while maintaining a balance between borrowing and fiscal discipline,” Senate Finance Committee Chair Sani Musa said during the plenary session, as reported by Reuters.
Analysts cited by BusinessDay noted that the debut sukuk could help broaden Nigeria’s investor base and strengthen its presence in the global Islamic finance market, currently valued at more than $2 trillion. The Debt Management Office is expected to finalize the issuance terms by early 2026.
