Nigeria is preparing to tap the international capital market with its debut global Sukuk bond and a series of new loans expected to raise a combined total of $2.8 billion, as part of efforts to bolster external reserves and finance critical infrastructure projects.
According to government sources, the plan is aimed at diversifying the country’s borrowing portfolio and reducing dependence on conventional Eurobonds. The debut global Sukuk a Sharia-compliant financial instrument will mark Nigeria’s first entry into the Islamic finance market at the global level.
Finance ministry officials say the move aligns with the federal government’s strategy to attract a broader base of investors while adhering to its debt sustainability framework. Nigeria has previously issued three domestic Sukuk bonds since 2017, totaling over ₦615 billion, which were primarily used to fund major road projects across the six geopolitical zones.
Analysts believe the global Sukuk will open new funding opportunities from Middle Eastern and Asian investors, where appetite for Islamic finance products remains strong.
In addition to the Sukuk issuance, Nigeria plans to secure concessional loans from multilateral institutions to support budgetary needs and energy sector reforms. The borrowing plan, which forms part of the 2025 fiscal strategy, is expected to help bridge revenue shortfalls amid declining oil receipts and sluggish non-oil earnings.
Economists, however, caution that the government must balance its borrowing ambitions with effective debt management, given the rising cost of servicing Nigeria’s existing debt stock, which currently exceeds ₦100 trillion.
If successful, the global Sukuk issuance will not only strengthen Nigeria’s presence in international debt markets but also signal growing confidence in its commitment to innovative, faith-based financing instruments.
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