Tinubu Asks Senate to Approve $2bn Foreign Currency Bond in Domestic Market
President Bola Tinubu has requested the approval of the National Assembly to raise up to $2 billion through a foreign currency bond issuance within Nigeria’s domestic debt market.
The proposal was conveyed in a letter addressed to Senate President Godswill Akpabio and read on the Senate floor during Tuesday’s plenary session.
In the correspondence, President Tinubu explained that the proposed issuance aligns with the Fiscal Responsibility Act of 2007—specifically Section 44 (1) and (2)—as well as Presidential Executive Order No. 16 of 2023.
He stated that the objective of the debt raising is to support a local programme designed to issue foreign currency-denominated instruments, with the proceeds directed toward key sectors of the economy.
“I seek the National Assembly’s consideration and approval for capital mobilisation of up to two billion U.S. dollars in the local debt market, in furtherance of the Executive Order on foreign currency-linked financial instruments,” the President wrote.
According to him, the funds will be strategically channelled into areas with strong potential to drive economic expansion, improve infrastructure, increase foreign exchange inflow, generate employment, and yield investment returns.
He added that the selection of sectors to benefit from the funding would be recommended by the Minister of Finance and Coordinating Minister of the Economy, and subject to parliamentary appropriation and oversight.
President Tinubu highlighted that this financing plan could bolster the nation’s foreign reserves, contribute to exchange rate stability, and broaden the government’s funding base.
“It will deepen the pool of investors in Federal Government securities and enhance product offerings in the domestic financial markets,” he said.
While acknowledging that the proposed borrowing would raise Nigeria’s debt profile and servicing obligations, the president emphasized that the programme offers a unique opportunity for investors to earn returns on their dollar holdings while contributing to economic development.
Following the reading of the letter, Senate President Akpabio referred the matter to the Senate Committee on Local and Foreign Debts.
The Committee is expected to review the proposal and present its recommendations within two weeks.
