Tinubu Seeks National Assembly’s Approval for Fresh $7.7bn External Loan

President Bola Tinubu has asked the National Assembly to approve a fresh external borrowing request of $7.7 billion to help finance Nigeria’s 2026 budget deficit.

The request, contained in a letter dated October 26, 2026, was read by Senate President Godswill Akpabio during Wednesday’s plenary.

According to the letter, the proposed borrowing amounts to N10.79 trillion, calculated at the budget exchange rate of N1,409 to the dollar.

Akpabio said the latest request effectively supersedes an earlier borrowing proposal of $20.3 billion, noting that the new submission provides clearer details on the proposed funding sources.

He explained that the Federal Government would explore different financing options to secure the funds under the most favourable terms.

Tinubu stated that the 2026 Appropriation Act provides for N29.2 trillion in new borrowing to finance a budget deficit estimated at N31.4 trillion. This comprises N18.4 trillion in domestic borrowing and N10.79 trillion in external financing.

The President outlined several potential sources of the proposed external loan, including concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing, direct borrowing from international financial institutions and Eurobond issuance.

He indicated that greater emphasis would be placed on Eurobond issuance, which the government considers a faster option capable of raising substantial funds at competitive costs.

Tinubu said the proceeds would be used to finance priority projects and programmes under the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.

He added that the external borrowing would also support Nigeria’s foreign reserves, as the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government, with the expectation of strengthening the stability of the naira.

The President consequently asked the National Assembly to approve the N10.79 trillion external borrowing and authorise the government to utilise one or more of the proposed funding sources.

Following the presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts for consideration and a report as soon as practicable.