2026 Budget: Tinubu Seeks Senate’s Nod For N10.79trn Foreign Loan

President Bola Tinubu has asked the Senate to approve external borrowing of $7.7 billion, equivalent to N10.79 trillion, to partly finance the deficit in the 2026 Appropriation Act.

The request was contained in a letter dated October 26, 2026, which was read on Wednesday during plenary by the President of the Senate, Godswill Akpabio.

In the letter, Tinubu said the proposed borrowing was being sought in accordance with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003.

Section 21(1) requires the terms and conditions of external loans to be presented to and approved by the National Assembly, while Section 27(1) empowers the legislature to approve standard terms for negotiating external loans.

Akpabio explained that the fresh request effectively superseded an earlier proposal for $20.3 billion, noting that the new submission provided clearer details on the proposed funding sources and borrowing terms.

Tinubu recalled that the 2026 Appropriation Act provided for N29.2 trillion in new borrowings to finance a projected budget deficit of about N31.4 trillion.

The borrowing plan comprises N18.4 trillion in domestic loans and N10.79 trillion in external financing.

According to the President, the Federal Government intends to raise the $7.7 billion through one or a combination of funding sources, including concessional and commercial facilities from multilateral and bilateral institutions, the International Monetary Fund, bridge financing arrangements, direct loans from international financial institutions and Eurobond issuance.

He said the government would pursue the available options simultaneously, taking into account their respective costs, benefits and the time required to secure the funds.

However, Tinubu said greater emphasis would be placed on Eurobond issuance because of its relatively faster execution and capacity to raise substantial funds at competitive costs.

The President added that the final borrowing terms, including interest rates and repayment periods, would be determined at the pricing stage based on prevailing market conditions.

He said the Federal Ministry of Finance and the Debt Management Office would work together to ensure that Nigeria obtained the most favourable terms available.

Tinubu explained that the proposed loan would fund priority projects and programmes captured in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.

He further stated that the proceeds, which would be received by the Central Bank of Nigeria on behalf of the Federal Government, were also expected to support the country’s external reserves and help stabilise the naira.

The President urged the Senate to approve the proposed external borrowing of N10,790,366,835,481, based on an exchange rate of N1,409 to the dollar.

He also sought approval for the government to raise the funds through one or more of the identified financing options, with particular emphasis on Eurobond issuance.

In addition, he requested authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office, to take the necessary steps to implement the proposed borrowing.

Akpabio said the government would explore the available financing options to secure favourable 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 a report as soon as practicable.