President Bola Tinubu has requested approval from the National Assembly to obtain $20.52 billion and €1.05 billion in external loans to finance infrastructure and development projects across Nigeria.
The request forms part of the Federal Government’s 2026–2027 Supplementary External Borrowing Plan.
Tinubu’s proposal was contained in a letter read by Senate President Godswill Akpabio during plenary on Tuesday, October 27, 2026.
The proposed borrowing amounts to $20,517,755,901 and €1,045,083,643.
According to the President, the loans would support economic growth, address infrastructure challenges and finance essential government programmes.
Why Tinubu Wants $20.5bn, €1.05bn Loans
Tinubu explained that Nigeria requires additional financing to address infrastructure deficits and accelerate economic development.
The President said the proposed borrowing would support projects in critical sectors, including:
- Power and transportation infrastructure
- Agriculture and food security
- Healthcare and education
- Water supply and security
- Employment generation and skills development
- Financial management reforms
He maintained that the projects were selected following technical and economic evaluations to determine their potential contributions to national development.
The President also argued that external borrowing would help bridge financing gaps that have delayed major infrastructure projects.
Projects to Cover Nigeria’s 36 States
Tinubu disclosed that most of the projects under the proposed borrowing plan would be implemented across Nigeria’s 36 states and the Federal Capital Territory.
According to him, the investments are expected to create employment opportunities, promote entrepreneurship and improve access to essential services.
The administration also expects the projects to support poverty reduction and strengthen food security.
However, a detailed project-by-project breakdown of the proposed loans was not provided in the letter presented during the Senate proceedings.
The specific financing terms and amounts allocated to individual sectors have also not been publicly detailed.
Senate Begins Review of Borrowing Request
The borrowing proposal has been forwarded to the National Assembly for legislative consideration.
Following the presentation of Tinubu’s letter, Senate President Godswill Akpabio referred the request to the Senate Committee on Local and Foreign Debts for further scrutiny.
The committee is expected to work with other relevant committees, including Appropriations, where necessary.
Akpabio directed the committee to report back to the Senate within one week.
Lawmakers are expected to examine the proposed financing arrangements, the projects involved and their implications for Nigeria’s public finances.
The request has not yet received final legislative approval.
Nigeria’s Rising Debt Raises Concerns
The latest borrowing proposal comes amid continuing concerns about Nigeria’s public debt and the cost of servicing existing obligations.
Nigeria has relied on domestic and external borrowing to finance budget deficits, infrastructure projects and other government programmes.
Economists have repeatedly warned that rising debt-service obligations could reduce the resources available for education, healthcare and infrastructure development.
The International Monetary Fund and World Bank have also emphasised the importance of improving revenue collection and ensuring that public borrowing supports productive investments.
The Federal Government, however, maintains that carefully planned external financing remains necessary to address the country’s development challenges.
What Happens Next?
The Senate Committee on Local and Foreign Debts will review the proposed borrowing plan and submit its recommendations to lawmakers.
The National Assembly will then determine whether to approve the request.
Until legislative approval is secured, the proposed $20.52 billion and €1.05 billion facilities remain borrowing requests rather than approved loans.
The outcome will help determine how the Federal Government finances its planned infrastructure and development programmes under the 2026–2027 borrowing framework.
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