Tinubu Seeks Senate Approval For Fresh $7.7bn Foreign Loan
President Bola Tinubu has asked the Senate to approve a fresh external borrowing of $7.707 billion, equivalent to N10.79 trillion, to finance part of the Federal Government’s 2026 budget deficit.
In a letter dated October 26, 2026, read during plenary on Wednesday by Senate President Godswill Akpabio, Tinubu said the proposed loan would form part of the financing for projects and programmes captured in the 2026 Appropriation Act.
The request is based on an exchange rate of N1,400 to the dollar and represents the external component of the Federal Government’s borrowing plan.
According to the President, N18.4 trillion of the proposed new borrowing would be sourced domestically, while N10.79 trillion would come from external sources.
The President also sought the Senate’s authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office (DMO), to take necessary steps to implement the borrowing plan.
Akpabio said the fresh request superseded an earlier proposal seeking approval for $20.52 billion and €1.045 billion, which Tinubu had submitted to the National Assembly on October 27.
He described the new communication as more explicit, providing greater clarity on the proposed financing arrangements and allowing the government to explore different sources of external funding.
In the letter, Tinubu said the external funds would be raised through a combination of financing options, including Eurobond issuance, concessional and commercial facilities from multilateral and bilateral institutions, International Monetary Fund facilities and bridge financing arrangements.
He said the government would place greater emphasis on Eurobond issuance because of the relatively shorter time required to raise funds and the possibility of securing substantial financing at competitive costs.
“All the options will be pursued simultaneously, considering the costs and related benefits to the country and 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. Additionally, a large amount can be raised through Eurobonds at a relatively lower cost,” the President said.
Tinubu added that the final terms and conditions of the proposed borrowing would depend on prevailing market conditions at the time of pricing.
He assured the Senate that the Ministry of Finance and the DMO would work together to secure the most favourable terms for the country.
The President said the funds would support the implementation of projects and programmes in critical sectors, including defence and security, transportation, agriculture, power, education and healthcare.
According to him, the proposed external borrowing is intended to consolidate and strengthen the macroeconomic reforms and gains recorded by his administration.
“The new external borrowings are required to implement the items, programmes and projects in the 2026 Appropriation Act, which are designed to consolidate and strengthen the macroeconomic reforms and gains recorded by this administration in the past few years,” he said.
Tinubu further argued that the external borrowing would help strengthen Nigeria’s foreign reserves and support exchange rate stability.
