President Bola Tinubu has requested Senate approval for a $7.7 billion external borrowing plan, equivalent to approximately ₦10.79 trillion, to help finance Nigeria’s 2026 budget deficit and support projects across key sectors of the economy.
The request was contained in a letter dated October 26, 2026, and read during Wednesday’s plenary by Senate President Godswill Akpabio.
According to Tinubu, the proposed borrowing forms part of the ₦29.2 trillion in new loans provided for under the 2026 Appropriation Act, comprising ₦18.4 trillion in domestic borrowing and ₦10.79 trillion in external financing.
The President explained that the external loan would help finance part of the budget deficit and support the implementation of government programmes.
Tinubu Explains How Loan Will Be Used
In his letter to the National Assembly, Tinubu identified defence and security, transportation, agriculture, electricity, education and healthcare as priority sectors expected to benefit from the proposed financing.
He said the funds would support critical infrastructure development and strengthen ongoing economic reforms.
The President also explained that the loan proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, contributing to the country’s external reserves.
According to him, the additional foreign exchange inflow would support the naira and help strengthen Nigeria’s macroeconomic stability.
Federal Government Plans Eurobond Issuance
Tinubu disclosed that the government intends to explore several financing options, including loans from multilateral and bilateral institutions, commercial lenders and international financial organisations.
However, he indicated that greater emphasis would be placed on Eurobond issuance because of its potential to raise substantial funds within a shorter period.
The President noted that the final interest rates, repayment periods and other borrowing conditions would depend on prevailing international market conditions.
He assured lawmakers that the Federal Ministry of Finance and the Debt Management Office would work to secure favourable financing terms for Nigeria.
New Request Replaces Earlier $20.52bn Proposal
The latest borrowing request follows an earlier proposal seeking approval for external loans totalling $20.52 billion and €1.045 billion under the Federal Government’s 2026–2027 Supplementary External Borrowing Rolling Plan.
Speaking after the letter was read, Akpabio indicated that the new $7.7 billion request appeared to replace the previous proposal.
The earlier borrowing plan had been presented to support infrastructure, agriculture, healthcare, education, water supply, security and employment generation.
The latest submission provides more specific details on the amount required to implement the external borrowing provision in the 2026 budget.
Nigeria’s Rising Debt Raises Concerns
The new loan request comes amid growing concerns over Nigeria’s public debt and the cost of servicing government obligations.
According to the Debt Management Office, Nigeria’s total public debt reached ₦166.79 trillion as of June 30, 2026, compared with ₦87.38 trillion recorded in June 2023.
The increase reflects new borrowing, exchange-rate movements and other changes in the country’s debt portfolio.
The rising debt stock has renewed questions about how the government intends to finance public expenditure while maintaining sufficient revenue to meet repayment obligations.
Although the Federal Government maintains that borrowing is necessary to address infrastructure gaps and support economic development, concerns remain over debt sustainability and the effective use of borrowed funds.
Senate Refers Loan Request to Committee
Following the presentation, Akpabio referred Tinubu’s request to the Senate Committee on Local and Foreign Debts for legislative consideration.
The committee is expected to examine the proposed financing arrangements and report its findings to the Senate as soon as practicable.
The request is subject to legislative approval before the Federal Government can proceed with implementation.
If approved, the government would be authorised to raise the proposed external financing in accordance with the borrowing plan and applicable legal requirements.
The Senate’s eventual decision will determine the next stage of the government’s effort to secure additional foreign funding for the 2026 budget.
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