Tinubu Seeks Senate Approval for ₦10.79trn External Loan to Part-Finance 2026 Budget
President Bola Ahmed Tinubu has sought the approval of the National Assembly to secure fresh external borrowing of $7.707 billion, equivalent to approximately ₦10.79 trillion, to part-finance the Federal Government’s 2026 budget deficit.
The request, contained in a letter dated 26 October 2026 and addressed to Senate President Godswill Akpabio, was presented during Wednesday’s plenary session of the Senate.
The proposed borrowing is part of the Federal Government’s ₦29.2 trillion new borrowing provision in the 2026 Appropriation Act, comprising ₦18.4 trillion in domestic borrowing and ₦10.79 trillion in external financing.
The government’s overall budget deficit for the 2026 fiscal year is estimated at approximately ₦31.4 trillion.
Following the presentation of the presidential request, the Senate referred it to the Committee on Local and Foreign Debts for further legislative scrutiny and a report as soon as practicable.
Proposed Sources of Financing
In the letter, President Tinubu explained that the proposed external borrowing would be sourced through one or a combination of financing arrangements, including:
- Eurobond issuance;
- Concessional and commercial loans from multilateral and bilateral institutions;
- International Monetary Fund facilities;
- Bridge financing arrangements; and
- Loan syndications.
The President indicated that the government would place greater emphasis on Eurobond issuance, citing its potential to mobilise substantial funds within a relatively shorter period.
He, however, noted that the final interest rates and other borrowing conditions would depend on prevailing market circumstances at the time of issuance.
Tinubu assured lawmakers that the Federal Ministry of Finance and the Debt Management Office would work together to secure favourable financing terms for the country.
Priority Sectors
According to the President, the proposed borrowing would support critical projects and programmes captured in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.
He argued that the external financing would help consolidate the administration’s economic reforms, sustain development initiatives and address the country’s infrastructure and funding gaps.
The President also said the proceeds would strengthen Nigeria’s external reserves, as the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
He maintained that the additional foreign currency inflow would provide support for the stability of the naira and Nigeria’s external financial position.
Legislative Scrutiny and Debt Concerns
The request comes amid continuing public debate over Nigeria’s rising debt obligations, the cost of servicing government loans and the sustainability of the country’s fiscal position.
Although the Federal Government has maintained that borrowing is necessary to finance critical infrastructure and development programmes, concerns persist over the country’s revenue capacity and the need to ensure that borrowed funds deliver measurable economic and social benefits.
The Senate Committee on Local and Foreign Debts is expected to examine the proposed financing arrangements, borrowing conditions and implications for Nigeria’s debt obligations before reporting back to the chamber.
The President’s request is subject to the required legislative approval before the proposed external borrowing can be implemented.