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President Bola Tinubu has asked the National Assembly to approve a fresh external borrowing plan of $7.7bn to finance part of the 2026 budget deficit, effectively replacing an earlier proposal of about $20.5bn.
The request, contained in a letter dated October 26, 2026, was read by Senate President Godswill Akpabio during Wednesday’s plenary.
Tinubu is seeking approval to borrow ₦10.79tn, equivalent to approximately $7.7bn at the budget exchange rate of ₦1,409 to the dollar.
In the letter, the President said the request was made under Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003. The provisions require external loan terms and conditions to be presented to and approved by the National Assembly.
Tinubu explained that the 2026 Appropriation Act provided for ₦29.2tn in new borrowing to finance a budget deficit of about ₦31.4tn. The borrowing plan comprises ₦18.4tn in domestic loans and ₦10.79tn in external financing.
Reacting to the request, Akpabio said the latest proposal effectively superseded the earlier $20.3bn borrowing request because it provided clearer details on the proposed funding arrangements.
“I believe this letter effectively supersedes the earlier request for 20.3 billion US dollars because the present request is more explicit. It also recognises that the borrowing will not necessarily come from one source,” he said.
Akpabio added that the Federal Government would explore available funding options and seek favourable borrowing terms.
“The government will have to explore the available options and secure the best possible terms under a willing-seller, willing-buyer arrangement,” he said.
The Senate President subsequently referred the request to the Committee on Local and Foreign Debts for consideration and a report as soon as practicable.
According to the President’s letter, the Federal Government plans to raise the funds through one or a combination of several sources, including concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing, direct borrowing from international financial institutions and Eurobond issuance.
Tinubu said the government would assess the costs, benefits and access timelines of the different options, with greater emphasis on Eurobond issuance because it could provide larger amounts within a shorter period.
He added that the final interest rates and repayment periods would depend on prevailing market conditions when the funds were raised. The Ministry of Finance and the Debt Management Office would work together to secure favourable terms.
The proposed external borrowing is expected to finance priority projects and programmes in the 2026 budget, covering defence and security, transportation, agriculture, power, education and healthcare.
Tinubu also said the foreign loan proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, potentially supporting the country’s external reserves and the stability of the naira.
He asked the National Assembly to approve the ₦10.79tn borrowing and authorise the government to use one or more of the proposed funding sources, particularly Eurobond issuance.
The President further requested that the Minister of Finance and Coordinating Minister of the Economy be empowered to work with the DMO to execute the borrowing plan.
