Economy
Tinubu to Borrow Fresh $2.3bn for 2025 Budget Via Eurobonds, Sukuk
By Adedapo Adesanya
President Bola Tinubu is seeking approval for a fresh external borrowing of $2.3 billion to implement the 2025 Appropriation Act, refinance maturing Eurobonds, and expand Nigeria’s debt instruments to include Islamic finance products.
This is in addition to a plan to issue a $500 million sovereign Sukuk, which will mark Nigeria’s debut in the international Islamic finance market.
On Tuesday, the President forwarded the request, contained in a letter and read on the floor of the House of Representatives by the Speaker, Mr Tajudeen Abbas, in line with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003.
President Tinubu noted that “the 2025 fiscal framework anticipates $9.27 billion in new borrowings to address the budget deficit, of which $1.84 billion is earmarked for external sources at an assumed exchange rate of N1,500 to the Dollar.”
He explained that the external borrowing would be sourced through various instruments, including Eurobonds, syndicated loans, bridge financing, or direct loans from multilateral institutions — in order to optimise cost and manage risk effectively.
A key element of the plan is the refinancing of Nigeria’s $1.118 billion Eurobond, issued in 2018 at a coupon rate of 7.625 per cent and due in November 2025.
“This is a standard practice in debt capital markets,” the President wrote. “Refinancing through Eurobonds or syndicated loans will guarantee debt sustainability and boost investor confidence.”
He maintained that refinancing maturing obligations was part of routine debt management and vital for maintaining Nigeria’s fiscal credibility.
The President’s letter also revealed a plan to issue a $500 million sovereign Sukuk internationally, a move aimed at deepening Nigeria’s presence in the Islamic finance market.
The initiative follows the success of domestic Sukuk issuances, which have raised N1.39tn since 2017 to fund critical infrastructure projects such as major road construction.
The government is also exploring a credit enhancement guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group (IsDB), to strengthen the offering.
“If the ICIEC credit guarantee is utilised, 25% of the proceeds will be used to repay relatively expensive debt obligations, while the balance will finance pre-identified infrastructure projects,” the President said.
He assured lawmakers that the Federal Ministry of Finance and the Debt Management Office would engage reputable transaction advisers to secure the best pricing and terms amid volatile global market conditions.
Mr Tinubu further expressed confidence in Nigeria’s reputation as a consistent and credible issuer in international capital markets, noting that the proposed transactions would reinforce investor trust and ensure prudent fiscal management.
The development has raised worries about Nigeria’s debt threshold, which stood at near N150 trillion as of mid-2025.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange appreciated for the fourth straight session on Thursday, January 8, chalking up 0.21 per cent.
This improved the market capitalisation of the bourse by N4.69 billion to N2.190 trillion from the N2.185 trillion it ended in the preceding session, and the NASD Unlisted Security Index (NSI) added 7.83 points to close at 3,660.87 points compared with Wednesday’s 3,653.04 points.
Business Post observed that there were movements around five securities during the trading day, with three pointing north and two point south.
FrieslandCampina Wamco Nigeria Plc gained N2.55 to close at N62.47 per share versus Wednesday’s price of N59.92 per share, Central Securities Clearing System (CSCS) Plc appreciated by 48 Kobo to N42.62 per unit from N42.14 per unit, and IPWA Plc improved by 10 Kobo to N1.12 per share from the N1.02 per share it ended at midweek.
On the flip side, Afriland Properties Plc lost N1.81 to end at N16.30 per unit versus the previous day’s value of N18.11 per unit, and Geo-Fluids Plc crashed by 6 Kobo to quote at N6.82 per share versus N6.88 per share.
During the session, the volume of transactions was down by 74.0 per cent to 486,499 units from 1.9 million units, the value of trades slumped by 70.9 per cent to N10.5 million from N36.3 million, and the number of deals went down by 46.7 per cent to 24 deals from 45 deals.
At the close of business, CSCS Plc remained the most active stock by value on a year-to-date basis with 1.1 million units sold for N42.7 million, followed by Geo-Fluids Plc with 2.9 million units valued at N20.3 million, and FrieslandCampina Wamco Nigeria Plc with 217,757 units worth N13.1 million.
The most active stock by volume on a year-to-date basis was Geo-Fluids Plc with 2.9 million units valued at N20.3 million, trailed by Industrial and General Insurance (IGI) Plc followed with 2.9 million units traded for N1.9 million, and CSCS Plc with 1.1 million units worth N42.7 million.
By Adedapo Adesanya
After recent gains, the Naira recorded its first loss against the US Dollar in 2026 on Thursday, January 8, in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Yesterday, at the official market, the Nigerian currency tumbled against the greenback by N1.46 or 0.11 per cent to sell for N1,419.72/$1, in contrast to Wednesday’s closing price of N1,418.26/$1.
However, the local currency further appreciated against the Pound Sterling in the same market segment by N5.28 to close at N1,908.38/£1 versus the preceding session’s N1,913.66/£1, but lost 14 Kobo against the Euro to finish at N1,657.66/€1 compared with the midweek session’s closing price of N1,657.52/€1.
In the same vein, the Naira weakened against its American counterpart in the parallel market by N15 during the session to quote at N1,485/$1 compared with the previous day’s N1,470/$1 and declined by N3 at the GTBank forex desk to trade at N1,428/$1 versus the previous value of N1,425/$1.
The domestic currency has remained relatively stable in the spot market in tandem with projections by analysts, including PwC, which expects the Naira to remain broadly stable through 2026, underpinned by ongoing reforms by the Central Bank of Nigeria (CBN) and improved portfolio inflows
However, policymakers have been told to wary of weak oil prices or production disruptions reducing FX inflows, deepening FX liquidity crisis, and forced currency devaluation, which could return prices to weaker levels.
According to CardinalStone, pre-election worries, an unanticipated slump in exports, especially non-oil, and the ongoing global trend of tightening border controls may reduce Nigerian exports, and have a ripple effect on the Naira’s strength.
As for the cryptocurrency market, it was bullish as traders await the US Supreme Court ruling on President Donald Trump’s tariffs.
The market is pricing in to see if the US Supreme Court explicitly upholds Trump’s use of emergency powers under the International Emergency Economic Powers Act to impose tariffs. Depending on the outcome, this could potentially push long-term US yields higher and tighten global liquidity, a mix that has historically pressured crypto, which is sensitive to quick changes in both.
Solana (SOL) appreciated by 4.2 per cent to $140.49, Binance Coin (BNB) gained 1.8 per cent to sell for $895.46, Cardano (ADA) increased by 1.8 per cent to $0.3989, and Ripple (XRP) soared by 1.6 per cent to $2.14.
Further, Bitcoin (BTC) and Litecoin (LTC) appreciated by 1.3 per cent each to $91,017.24 and $81.73 apiece, Ethereum (ETH) grew by 0.4 per cent to $3,119.22, and Dogecoin (DOGE) expanded by 0.2 per cent to $0.1429, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) finished flat at $1.00 each.
By Dipo Olowookere
It was another trading session for the Nigerian Exchange (NGX) Limited in the green territory as it further improved by 0.13 per cent at the close of business.
The bourse managed to stay up despite profit-taking in the financial services and the energy sectors yesterday.
According to data, the insurance counter depreciated by 3.07 per cent, the banking industry went down by 0.40 per cent, and the energy space shrank by 0.11 per cent.
However, the commodity index increased by 0.65 per cent, the consumer goods landscape went up by 0.55 per cent, and the industrial goods sector closed higher by 0.11 per cent.
Consequently, the All-Share Index (ASI) soared by 214.80 points to 160,806.56 points from 160,591.76 points and the market capitalisation advanced by N137 billion to N102.822 trillion from N102.685 trillion.
Investor sentiment was weak on Thursday as Customs Street ended with 32 price gainers and 41 price losers, indicating a negative market breadth index.
Neimeth chalked up 10.00 per cent to trade at N7.70, May and Baker increased by 9.85 per cent to N26.20, eTranzact gained 9.64 per cent to finish at N13.65, Multiverse jumped by 9.51 per cent to N21.30, and Mecure Industries grew by 9.42 per cent to N74.95.
On the flip side, International Energy Insurance decreased by 9.90 per cent to N2.73, ABC Transport tumbled by 9.88 per cent to N4.47, Austin Laz crashed by 9.84 per cent to N4.58, Conoil stumbled by 9.72 per cent to N169.00, and Veritas Kapital dropped 9.69 per cent to N1.77.
The busiest stock was Chams with 60.5 million units worth N236.8 million, Linkage Assurance traded 54.1 million units valued at N97.6 million, Tantalizers transacted 45.0 million units for N129.7 million, Access Holdings sold 35.5 million units worth N815.4 million, and Champion Breweries exchanged 31.2 million units valued at N519.1 million.
When the closing gong was struck, market participants traded 645.1 million units for N16.5 billion in 44,410 deals compared with the 1.4 billion units valued at N20.7 billion transacted in 49,286 deals a day earlier, showing a fall in the trading volume, value, and number of deals by 53.92 per cent, 20.29 per cent, and 9.89 per cent apiece.
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