By TheDailyNewsHub Reporter
President Bola Ahmed Tinubu has asked the Nigerian Senate to approve a fresh external borrowing plan of $7.7 billion, equivalent to approximately ₦10.79 trillion, to help finance the Federal Government’s 2026 budget deficit.
The request was conveyed in a letter dated October 26, 2026, which Senate President Godswill Akpabio read during plenary on Wednesday, November 4.
In the letter, Tinubu sought approval to raise $7,707,404,882.49 at the 2026 budget exchange rate of ₦1,400 to the dollar, describing the proposed financing as part of the external borrowing component already provided for in the 2026 Appropriation Act.
The President explained that the 2026 budget provides for ₦29.2 trillion in new borrowing, comprising ₦18.4 trillion in domestic borrowing and approximately ₦10.79 trillion in external financing.
He said the proposed funds would support projects and programmes in critical sectors, including defence and security, transportation, agriculture, power, education and healthcare.
The government intends to explore several financing options, including concessional and commercial loans from multilateral and bilateral institutions, facilities from the International Monetary Fund (IMF), bridge financing, syndicated loans and Eurobond issuance.
However, Tinubu said greater emphasis would be placed on Eurobonds because they could be concluded more quickly and potentially provide access to larger amounts at comparatively favourable costs.
He noted that the final interest rates, repayment periods and other conditions would depend on prevailing market conditions when the borrowing is priced.
The President also said the proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, helping to strengthen the country’s external reserves and support the stability of the naira.
Following the presentation of the letter, Akpabio referred the request to the Senate Committee on Local and Foreign Debts for further consideration and directed it to report back as soon as practicable.
The Senate President also indicated that the latest proposal replaces an earlier request seeking approval for external borrowing facilities of approximately $20.52 billion and €1.045 billion under the 2026–2027 Supplementary External Borrowing Plan.
The development comes amid renewed debate over Nigeria’s rising public debt and the government’s reliance on external financing. Former President Olusegun Obasanjo recently criticised the administration’s borrowing policy, warning that excessive debt could place a burden on future generations. Read more in Obasanjo’s warning that debt destroys generations.
According to the Debt Management Office, Nigeria’s total public debt stood at ₦166.79 trillion as of June 30, 2026, covering obligations owed by the Federal Government, state governments and the Federal Capital Territory.
The proposed $7.7 billion borrowing has not yet received final legislative approval. Its implementation will depend on the outcome of the National Assembly’s consideration.