By Fatima Saka
President Bola Tinubu on Wednesday transmitted a request to the Senate seeking approval to raise $7.7 billion in external loans to finance part of the 2026 budget deficit.
The request, contained in a letter dated October 26, 2026, was read during Wednesday’s plenary by the President of the Senate.
In the letter, Tinubu sought the National Assembly’s approval to implement the external borrowing component of the 2026 Appropriation Act, amounting to $7,707,404,881.49, equivalent to approximately N10.79 trillion.
The President recalled that the 2026 Appropriation Act approved N29.2 trillion in new borrowings to finance the budget deficit, comprising N18.4 trillion in domestic borrowing and N10.79 trillion in external borrowing.
He proposed sourcing the external funds through a combination of Eurobond issuance, bridge financing facilities, loan syndications and direct borrowing from international financial institutions.
Tinubu said the Federal Government would place greater emphasis on Eurobond issuance because of its relatively faster completion process and potential to raise larger amounts at comparatively lower costs.
He, however, explained that the final interest rates and other terms and conditions would depend on prevailing international market conditions at the time of pricing.
According to the President, the proposed borrowing would finance priority projects and programmes in defence and security, transportation, agriculture, power, education and health.
He added that the funds would also strengthen Nigeria’s external reserves, as the proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby supporting exchange-rate stability.
Tinubu said the request was made in compliance with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003, which require National Assembly approval for external loan terms and conditions.
He consequently requested the Senate to authorise the Federal Government to raise the funds from one or more of the proposed sources and empower the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office, to take necessary steps to implement the borrowing.
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Following the presentation of the presidential correspondence, the Senate President referred the request to the Senate Committee on Local and Foreign Debts for consideration and to report back as soon as practicable.
The Senate President also indicated that the latest request superseded an earlier borrowing proposal, describing the new communication as more explicit about the proposed funding sources and arrangements.
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