President Bola Tinubu has asked the Senate to approve N10.79 trillion, equivalent to about $7.7 billion, in external borrowing to partly finance Nigeria’s 2026 budget deficit.
The request, contained in a letter dated October 26, 2026, was read by Senate President Godswill Akpabio during plenary on Wednesday.
The latest proposal effectively replaces an earlier request for about $20.3 billion in external borrowing, according to Akpabio.
Tinubu said the borrowing represents the external component of the N29.2 trillion in new borrowing approved under the 2026 Appropriation Act.
Of the total borrowing requirement, N18.4 trillion is to be raised domestically, while N10.79 trillion is to come from external sources.
The president said the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which provide for National Assembly approval of external borrowing arrangements.
According to the letter, the Federal Government intends to raise approximately $7.7 billion through one or a combination of several financing options.
These include concessional and commercial loans from multilateral and bilateral institutions, facilities from the International Monetary Fund, bridge financing, direct borrowing from international financial institutions and Eurobond issuance.
Tinubu said the financing options would be assessed simultaneously based on their costs, benefits and the time required to access the funds.
He indicated that greater emphasis would be placed on Eurobond issuance because such transactions could be concluded relatively faster and potentially raise larger amounts at competitive costs.
However, the president said the final terms of the borrowing, including interest rates and repayment tenures, would depend on prevailing market conditions when the funds are priced.
He added that the Federal Ministry of Finance and the Debt Management Office would work to secure favourable terms for Nigeria.
Tinubu said proceeds from the borrowing would support priority projects and programmes contained in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.
He also said the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government and would support the country’s external reserves.
The president subsequently asked the National Assembly to authorise the Federal Government to implement the N10.79 trillion external borrowing and permit the use of one or more of the proposed financing sources, with greater emphasis on Eurobond issuance.
He also sought approval for the Minister of Finance and Coordinating Minister of the Economy, working with the DMO, to take all necessary steps to execute the borrowing plan.
Akpabio said the latest correspondence was more explicit than the earlier proposal and effectively superseded the previous $20.3 billion request.
He said the government would consider different financing sources in an effort to secure favourable borrowing terms under a willing-seller, willing-buyer arrangement.
The Senate president subsequently referred the request to the Senate Committee on Local and Foreign Debt for consideration and directed it to report back as soon as practicable.
