President Bola Tinubu has requested the approval of the Senate to secure a fresh external loan of $7.707 billion, equivalent to N10.79 trillion, to finance part of the Federal Government’s 2026 budget deficit.
The request was contained in a letter dated October 26, 2026, which was read on the floor of the Senate on Wednesday by Senate President Godswill Akpabio during plenary.
In the letter, Tinubu explained that the proposed borrowing would constitute the external component of the Federal Government’s financing plan for projects and programmes contained in the 2026 Appropriation Act.
Based on an exchange rate of N1,400 to the dollar, the proposed external borrowing amounts to N10.79 trillion, while the government plans to raise another N18.4 trillion through domestic borrowing.
The President also sought the Senate’s authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office (DMO), to take the necessary steps towards implementing the borrowing plan.
The latest request effectively replaces an earlier proposal submitted to the National Assembly on October 27, seeking approval for $20.52 billion and €1.045 billion in external loans.
Explaining the revised communication, Akpabio described it as more explicit and detailed, providing greater clarity on the proposed financing arrangements and giving the Federal Government room to explore multiple sources of external funding.
According to the President, the proposed $7.707 billion would be raised through a combination of financing options, including Eurobond issuance, concessional and commercial facilities from multilateral and bilateral institutions, International Monetary Fund (IMF) facilities and bridge financing arrangements.
However, Tinubu said the government would place greater emphasis on Eurobond issuance because of the relatively shorter time required to access the funds and the potential to raise substantial amounts at competitive costs.
He explained that all available financing options would be pursued simultaneously, subject to an assessment of their respective costs, benefits and the time required to secure the funds.
The President added that the final terms and conditions of the facilities would be determined by prevailing market conditions at the time of pricing, assuring lawmakers that the Ministry of Finance and the DMO would work together to secure the most favourable terms for the country.
Tinubu said the proposed borrowing was necessary to support critical sectors of the economy, particularly defence and security, transportation, agriculture, power, education and healthcare.
He maintained that the funds would help consolidate and strengthen the macroeconomic reforms and economic gains recorded by his administration in recent years.
“The new external borrowings are required to implement the items, programmes and projects in the 2026 Appropriation Act, which are designed to consolidate and strengthen the macroeconomic reforms and gains recorded by this administration in the past few years,” he stated.
The President further argued that the external borrowing would contribute to strengthening Nigeria’s foreign reserves and supporting exchange rate stability.
He explained that the foreign currency proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby boosting the country’s external reserves and providing additional support for the naira.
“It is also important to add that the process will increase the accretion to the external reserves, since the funds will be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby supporting the naira exchange rate,” he said.
Tinubu anchored the request on Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require legislative approval for external borrowing and empower the National Assembly to approve the terms and conditions of such facilities.
Reacting to the revised proposal, Akpabio said the new letter effectively superseded the earlier request for $20.52 billion and €1.045 billion.
“I believe this letter effectively cancels the earlier request that was sent for $20-something billion. But this is much more explicit,” the Senate President said.
He added that the revised proposal would provide the government with greater flexibility in accessing international financing and negotiating favourable borrowing terms.
Following its presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wammakko (APC, Sokoto North), for further legislative consideration.
The committee is expected to scrutinise the proposed borrowing arrangements and submit its report to the Senate for consideration.