Nigerian President Bola Tinubu has asked parliament to approve $2.3 billion in new loans and authorise the issuance of a $500 million debut sovereign sukuk on international debt markets, according to a letter read to lawmakers on Tuesday.

Finance Minister and Coordinating Minister for the Economy, Wale Edun, told an economic summit in Abuja on Monday that the government was focusing on green bonds, sukuk, and diaspora bonds, which he said are priced more cheaply than Eurobonds.

Last month, Nigeria’s debt office chief told Reuters the country could issue up to $2.3 billion in international bonds before year-end, depending on market conditions.

Africa’s most populous country launched its first international bond sale in nearly three years last December but has not tapped global capital markets so far in 2025.

Nigeria has improved its fiscal position and earned positive reviews from ratings agencies, driven by reforms introduced by Tinubu.

The government hopes investors will reward its reform efforts with lower yields on future debt issuances.

Tinubu’s letter said the new funds would be used to part-finance the budget deficit and refinance maturing Eurobonds due in November.

It added that borrowing could be done via the Eurobond market, loan syndication, bridge financing from bookrunners, or directly from international banks.

The president said the government would issue the sukuk with or without credit enhancements from the Islamic Corporation, aiming to replicate the success of its domestic sukuk programme in international markets.