Tinubu has asked the National Assembly to approve a $7.7bn external loan for the 2026 budget, superseding an earlier $20.5bn borrowing proposal.
President Bola Tinubu has asked the National Assembly to approve external borrowing of about $7.7 billion to part-finance the 2026 budget, replacing an earlier supplementary borrowing proposal worth $20.52 billion and €1.045 billion.
The request, contained in a letter dated October 26, 2026, was read by Senate President Godswill Akpabio during Wednesday’s plenary.
Tinubu is seeking approval to raise N10.79 trillion, equivalent to approximately $7.7 billion at the budget exchange rate of N1,400 to the dollar.
The President said the proposed external financing forms part of the N29.2 trillion in new borrowing provided for in the 2026 Appropriation Act. This comprises N18.4 trillion in domestic borrowing and N10.79 trillion in external borrowing.
Reacting to the letter, Akpabio said the new request effectively superseded the earlier proposal because it provided clearer details on the funding sources the government intended to pursue.
“I believe this letter effectively supersedes the earlier request for 20.3 billion US dollars because the present request is more explicit. It also recognises that the borrowing will not necessarily come from one source,” he said.
The Senate President referred the request to the Committee on Local and Foreign Debts for consideration and a report to the Senate as soon as practicable.
Why Tinubu is seeking the $7.7bn loan
In his letter, Tinubu said the external borrowing was intended to part-finance the 2026 budget deficit and support the implementation of projects and programmes approved in the Appropriation Act.
The proposed financing covers priority areas including defence and security, transportation, agriculture, power, education and healthcare.
The President cited Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, as the legal basis for seeking legislative approval.
Section 21(1) requires the terms and conditions of external loans to be presented to the National Assembly for approval before the Minister of Finance can obtain them.
Section 27(1) provides for the National Assembly to approve, by resolution, standard terms and conditions for negotiating and accepting external loans and issuing guarantees.
The request is for the external component of the 2026 budget’s borrowing provision, rather than a separate approval for the entire N29.2 trillion borrowing programme.
How the government plans to raise the funds
Tinubu said the Federal Government intends to raise the $7.7 billion through one or a combination of several financing options.
These include concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing, direct borrowing from international financial institutions and Eurobond issuance.
The government plans to explore the options simultaneously, considering their respective costs, benefits and the time required to access the funds.
However, Tinubu said greater emphasis would be placed on Eurobond issuance because it could be concluded more quickly and potentially raise larger amounts at competitive costs.
“The final terms and conditions, including interest rates and tenures, will be determined at the time of pricing, depending on prevailing market conditions,” he said.
He added that the Federal Ministry of Finance and the Debt Management Office would work to secure the most favourable borrowing terms for the country.
Tinubu says borrowing will support naira, external reserves
The President said the loan proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, increasing the country’s external reserves and supporting the stability of the naira.
He asked the National Assembly to authorise the government to implement the N10.79 trillion external borrowing and approve the use of one or more of the proposed funding sources, with greater emphasis on Eurobond issuance.
He also sought authorisation for the Minister of Finance and Coordinating Minister of the Economy to work with the Debt Management Office to implement the proposed borrowing.
The new request follows Tinubu’s October 27 proposal for a supplementary external borrowing plan of $20.52 billion and €1.045 billion for the 2026–2027 period.
That earlier proposal was intended to finance projects across infrastructure, agriculture, healthcare, education, water supply, security and employment generation.
Akpabio’s statement that the latest request supersedes the earlier one signals a change in the government’s immediate borrowing proposal. The Senate committee’s review will determine the next legislative steps.
The $7.7 billion facility has not yet been approved by the National Assembly, and the final interest rates and repayment periods will depend on the financing arrangements eventually secured.
