President Bola Tinubu has asked the Senate to approve a $7.7bn external borrowing plan to help finance part of the Federal Government’s 2026 budget deficit. The request, valued at approximately ₦10.79tn using the budget exchange rate of ₦1,400 to the dollar, was presented in a letter read by Senate President Godswill Akpabio during Wednesday’s plenary.
In the letter dated October 26, 2026, Tinubu sought the National Assembly’s approval to implement new external borrowing provisions contained in the 2026 Appropriation Act. The President explained that the proposed borrowing formed part of the ₦29.2tn approved new borrowing for the 2026 budget, comprising ₦18.4tn in domestic borrowing and ₦10.79tn in external borrowing.
He said the funds would help cover the budget deficit and support the execution of projects and programmes included in the appropriation law. According to the letter, the Federal Government intends to explore several funding options, with particular emphasis on issuing Eurobonds. Tinubu said this option could provide access to larger amounts of funding within a shorter period and at relatively lower costs.
He noted that the final interest rates, repayment periods and other conditions of the Eurobond issuance would depend on market conditions at the time of pricing. The President added that the Federal Ministry of Finance and the Debt Management Office would work to secure favorable borrowing terms for the country. Tinubu said the funds would be directed towards priority sectors, including defense and security, transportation, agriculture, power, education and healthcare.
He also explained that the proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, helping to increase the country’s external reserves and support the naira. Following the presentation, Akpabio said he believed the new request had replaced an earlier proposal seeking approval for $20.52bn and €1.045bn in external borrowing. He subsequently referred the latest request to the Senate Committee on Local and Foreign Debts for further consideration.
Last week, Tinubu had asked both chambers of the National Assembly to approve external borrowing facilities worth $20.52bn and €1.045bn under the Federal Government’s 2026–2027 Supplementary External Borrowing Rolling Plan. The earlier proposal was intended to fund projects in infrastructure, agriculture, healthcare, education, water supply, security and employment generation, among other areas.
President Tinubu has requested Senate approval to borrow $7.7bn externally to help finance the 2026 budget deficit and fund key projects.
The request has been referred to the Senate Committee on Local and Foreign Debts for consideration.
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