President Bola Tinubu has asked the Senate to approve a fresh $7.7bn external borrowing plan to part-finance the 2026 budget deficit, as the Federal Government intensifies efforts to secure funding for critical infrastructure and development projects across the country.
The request, equivalent to approximately N10.79tn at the budget exchange rate of N1,400 to a dollar, was conveyed in a letter dated October 26, 2026, which was read by Senate President Godswill Akpabio during Wednesday’s plenary.
The proposed borrowing is expected to provide additional resources for the implementation of projects and programmes captured in the 2026 Appropriation Act, particularly in sectors considered essential to the country’s economic development.
Borrowing to finance 2026 budget deficit
In the letter, Tinubu sought the National Assembly’s approval for the implementation of new external borrowings provided for in the 2026 Appropriation Act.
The President explained that the proposed external facility formed part of the N29.2tn total new borrowing approved for the 2026 budget, comprising N18.4tn in domestic borrowing and N10.79tn in external financing.
He said the external borrowing was required to part-finance the budget deficit of N20.23tn and ensure the effective execution of government projects and programmes.
Tinubu stated, “I write to request for a resolution of the National Assembly to implement the new external borrowings in the 2026 Appropriation Act in the sum of N10,790,366,835,481, which is the equivalent of $7,707,404,882.49 at the budget exchange rate of USD 1 to 1,400 Naira for the part financing of the budget deficit of 20.23 trillion Naira.”
Government considers Eurobond issuance
The President disclosed that the Federal Government planned to explore different funding options simultaneously, with particular emphasis on issuing Eurobonds.
According to him, Eurobond issuance offers the government the opportunity to raise substantial funds within a relatively shorter period and potentially secure larger amounts at lower costs.
He, however, explained that the final terms and conditions of the proposed Eurobond, including interest rates and repayment periods, would depend on prevailing market conditions at the time of pricing.
Tinubu said the Federal Ministry of Finance and the Debt Management Office would work together to ensure that Nigeria obtained the most favourable terms and conditions for the borrowing.
He added that the government would carefully consider available financing options to achieve its borrowing objectives without unnecessarily increasing the cost of accessing funds.
Defence, infrastructure, education to benefit
Explaining the intended utilisation of the proceeds, Tinubu identified defence and security, transportation, agriculture, power, education and healthcare as priority sectors expected to benefit from the external financing.
The President said the funds would support the implementation of projects and programmes designed to address critical infrastructure gaps, improve public services and stimulate economic activities.
He also disclosed that the external borrowing would help strengthen Nigeria’s foreign exchange reserves and support the naira.
According to him, the proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby increasing the country’s external reserves.
“The proceeds will increase accretion to external reserves since they will be received by the Central Bank of Nigeria on behalf of the Federal Government of Nigeria, thereby supporting the Naira exchange rate,” he said.
Akpabio refers request to Senate committee
After reading the President’s letter, Akpabio expressed the belief that the latest borrowing proposal effectively superseded an earlier request for $20.52bn and €1.045bn in external loans.
The Senate President subsequently referred the fresh request to the Senate Committee on Local and Foreign Debts for further legislative consideration.
The committee is expected to examine the proposal and report back to the Senate for further action.
Fresh request follows earlier $20.52bn proposal
The latest borrowing request comes barely a week after Tinubu approached both the Senate and the House of Representatives for approval of external borrowing facilities totalling $20.52bn and €1.045bn.
The earlier proposal was presented under the Federal Government’s 2026–2027 Supplementary External Borrowing Rolling Plan.
The proposed facilities were intended to finance projects and programmes in infrastructure, agriculture, healthcare, education, water supply, security and employment generation, among other areas.
The latest letter, however, specifically seeks approval for the $7.7bn external borrowing already provided for in the 2026 Appropriation Act, with Akpabio indicating that it may replace the earlier proposal
