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President Bola Tinubu has formally requested the Senate’s approval for a fresh external borrowing of $7.7 billion, equivalent to approximately ₦10.79 trillion, to part-finance the Federal Government’s 2026 budget deficit.
The request was contained in a letter dated October 26, 2026, and addressed to Senate President Godswill Akpabio. It was read on the floor of the Senate during Wednesday’s plenary session.
According to the letter, the proposed borrowing forms part of the ₦29.2 trillion in new borrowings already provided for in the 2026 Appropriation Act. This comprises ₦18.4 trillion in domestic borrowing and ₦10.79 trillion in external financing, intended to help bridge a budget deficit estimated at about ₦31.4 trillion.
Tinubu explained that the $7.7 billion figure is calculated at the budget exchange rate of ₦1,400 to the United States dollar. He noted that the request complies with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require National Assembly approval for external debt transactions.
The President stated that the funds would support priority projects and programmes in key sectors, including defence and security, transportation, agriculture, power, education and healthcare. He added that the foreign currency proceeds would also help strengthen Nigeria’s external reserves, with the money to be received by the Central Bank of Nigeria on behalf of the Federal Government.
Tinubu indicated that the government plans to raise the amount through one or a combination of financing options, with particular emphasis on Eurobond issuance because of its relatively faster processing time and capacity to mobilise substantial resources. Other potential sources include concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing and syndicated loans.
Senate President Godswill Akpabio observed that the latest request effectively supersedes an earlier proposal seeking approval for about $20.52 billion and €1.045 billion in external borrowing. He described the new correspondence as more explicit and noted that it recognises that the funds would not necessarily be drawn all at once.
Akpabio subsequently referred the request to the Senate Committee on Local and Foreign Debts for further legislative consideration and a report back to the chamber as soon as practicable.
The development comes as Nigeria continues to manage a rising public debt profile and implement economic reforms aimed at stabilising the economy and funding critical infrastructure.
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