President Bola Tinubu has asked the Senate to approve a $7.707 billion external borrowing plan, equivalent to about N10.79 trillion, to help finance projects and programmes in the 2026 Appropriation Act.
The request was contained in a letter dated October 26, 2026, which Senate President Godswill Akpabio read during plenary on Wednesday. Akpabio said the fresh proposal effectively superseded an earlier request seeking approval for $20.52 billion and 1.045 billion euros in external borrowing.
“I believe this letter effectively cancels the earlier request that was sent for $20-something billion. But this is much more explicit,” Akpabio said.
The proposed loan forms part of the N29.2 trillion new borrowing provision in the 2026 budget, which aims to finance a deficit estimated at around N31.4 trillion. Of that total, N18.4 trillion is expected from domestic sources, while N10.79 trillion is to be raised externally.
In the letter, Tinubu said the government would pursue multiple financing options simultaneously, including Eurobond issuance, concessional and commercial facilities from multilateral and bilateral institutions, International Monetary Fund facilities and bridge financing arrangements.
“All the options will be pursued simultaneously, considering the costs and related benefits to the country and the time required to access the funds,” he said. “In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude. Additionally, a large amount can be raised through Eurobonds at a relatively lower cost.”
The president said the funds were needed to implement items in the 2026 Appropriation Act designed to consolidate macroeconomic reforms. Priority sectors include defence and security, transportation, agriculture, power, education and healthcare.
He also noted that the foreign currency proceeds would help increase external reserves and support the naira, as the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
“It is also important to add that the process will increase the accretion to the external reserves… thereby supporting the naira exchange rate,” Tinubu said.
Akpabio referred the request to the Senate Committee on Local and Foreign Debts for consideration.
