President Bola Ahmed Tinubu has asked the National Assembly to approve a fresh external borrowing of $7.7 billion (approximately ₦10.79 trillion) to finance part of the Federal Government’s ₦31.4 trillion budget deficit for the 2026 fiscal year.
Earlier: Tinubu Seeks Senate’s Approval For Fresh $20.5bn, €1.045bn External Loans
Key Highlights
- Tinubu seeks approval for $7.7 billion (about ₦10.79 trillion) in fresh external borrowing.
- The loan will part-finance the ₦31.4 trillion deficit in the 2026 budget.
- The government plans to rely mainly on Eurobond issuance to raise the funds.
- Defence, transport, agriculture, power, education and health are listed as priority sectors.
- Akpabio says the request supersedes an earlier proposal of about $20 billion.
- The Senate has referred the request to its Committee on Local and Foreign Debts.
The request, contained in a letter dated October 26, 2026, and addressed to Senate President Godswill Akpabio, was read during Wednesday’s plenary session of the Senate.
Following its presentation, the Senate referred the request to its Committee on Local and Foreign Debts for further legislative consideration and a report.
External Component of 2026 Borrowing Plan
According to the President, the proposed borrowing represents the external financing component of the ₦29.2 trillion approved as new borrowings under the 2026 Appropriation Act.
The approved borrowing plan comprises ₦18.4 trillion in domestic borrowing and ₦10.79 trillion ($7.7 billion) in external borrowing, calculated at the budget exchange rate of ₦1,400 to the dollar.
Tinubu explained that the request complies with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require legislative approval for external borrowing transactions.
Eurobonds to Lead Borrowing Strategy
In outlining the government’s borrowing strategy, the President said Nigeria would explore different international financing options, with greater emphasis on Eurobond issuance because of its relatively faster completion process and capacity to raise substantial funds.
“Emphasis will be on the issuance of Eurobonds, which is typically faster to conclude. Additionally, a larger amount can be raised through Eurobonds at a relatively lower cost in respect to the terms and conditions,” the letter stated.
He assured the National Assembly that the Federal Ministry of Finance and the Debt Management Office (DMO) would negotiate favourable interest rates and repayment periods based on prevailing market conditions.
The President identified defence and security, transportation, agriculture, power, education and healthcare as priority sectors expected to benefit from the proposed borrowing.
He also explained that the foreign currency proceeds would be received by the Central Bank of Nigeria (CBN) on behalf of the Federal Government, with the expectation that the inflow would strengthen foreign reserves, support exchange-rate stability and reinforce ongoing macroeconomic reforms.
Read also:
- Nigeria Spends ₦7.7 Trillion on Debt Interest as Payments Exceed Revenue in H1 2026
- Sanusi Praises Tinubu’s Economic Reforms, Faults Government’s Response to Public Hardship
- NDC Accuses Tinubu of Excessive Borrowing Over Fresh ₦10.79 Trillion Loan Request
Akpabio: New Request Supersedes $20bn Proposal
Reacting to the communication, Akpabio said the latest request effectively superseded an earlier proposal for approximately $20 billion, describing the new submission as more explicit about the borrowing plan.
He explained that the government would not necessarily raise the entire amount at once but would seek favourable terms and conditions from international lenders.
“We have to go out there and search for the best terms, and achieve what they call a win-win seller, win-win buyer approach,” Akpabio said.
The Senate President subsequently referred the request to the Committee on Local and Foreign Debts for consideration.
The Minister of Finance and Coordinating Minister of the Economy, in collaboration with the DMO, are expected to oversee the borrowing process if the National Assembly grants the required approval.
The committee is expected to submit its report to the Senate for further legislative action as concerns over Nigeria’s rising public debt and the sustainability of government borrowing continue to generate public debate.
For more business and economy updates, follow us on X.
