President Bola Tinubu on Wednesday asked the House of Representatives for formal approval to implement the N10.79 trillion external borrowing component of the 2026 Appropriation Act, equivalent to about $7.71 billion at the budget exchange rate of N1,400 to the dollar.
In a letter addressed to Speaker Tajudeen Abbas and read during plenary, Tinubu said the request was required under Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which mandate that the terms and conditions of external loans be laid before and approved by the National Assembly before implementation.
“I write to request for the permission of the House of Representatives to implement the new external borrowing plan contained in the 2026 Appropriation Act in the sum of N10,790,366,835,481, which is equivalent to $7,707,404,882.49 at the budget exchange rate of $1 to N1,400, for the part financing of the budget deficit,” the president stated.
The amount forms part of the N29.22 trillion in new borrowing already approved in the 2026 budget to help finance a projected deficit of about N31.55 trillion. Of that total, N18.28 trillion is earmarked for domestic borrowing and N10.79 trillion for external sources.
Tinubu said the government would pursue multiple options at the same time, weighing cost and speed of access. “All options will be pursued simultaneously considering the cost of benefit to the country as well as the time required to access the funds. In view of this, emphasis will be on the issuance of Eurobonds which is typically faster to conclude,” he said.
He added that final terms would depend on market conditions at the time of pricing, and that the Ministry of Finance and the Debt Management Office would seek the most favourable terms available. The funds are intended to support projects in defence and security, transportation, agriculture, power, education and health, while also helping to strengthen external reserves and support the naira.
Speaker Abbas clarified that the request did not seek approval for new borrowing. The N10.79 trillion external component had already been approved by the National Assembly and included in the 2026 Appropriation Act. The letter simply fulfilled the statutory requirement for parliamentary endorsement of the terms and conditions of external loans.
“For the avoidance of doubt, this request is distinct from the president’s more borrowing request. It neither supersede nor withdraw that request which remain subject to consideration on its own merit,” Abbas said.
He stressed that the current communication concerned only the authorisation needed to implement external borrowing already provided for in the budget.
