President Bola Tinubu has asked the National Assembly to approve a fresh external borrowing of N10.79 trillion, equivalent to approximately $7.7 billion, to finance part of the 2026 budget deficit, in a move that effectively replaces an earlier $20.3 billion borrowing proposal.
The request, contained in a letter dated October 26, 2026, was read by Senate President Godswill Akpabio during Wednesday’s plenary.
Tinubu is seeking legislative approval to raise the funds at the budget exchange rate of N1,409 to the dollar.
In the letter, the president said the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which require legislative approval for the terms and conditions of external borrowing and empower the National Assembly to approve arrangements for negotiating and accepting such loans.
Tinubu disclosed that the 2026 Appropriation Act provided for N29.2 trillion in new borrowing to finance a budget deficit estimated at N31.4 trillion.
The borrowing requirement comprises N18.4 trillion in domestic financing and N10.79 trillion in external loans, with the latest request covering the foreign borrowing component.
Explaining the relationship between the new request and the earlier proposal, Akpabio said the latest letter effectively superseded the previous $20.3 billion request because it provided greater clarity on the proposed financing arrangements.
“I believe this letter effectively supersedes the earlier request for 20.3 billion US dollars because the present request is more explicit. It also recognises that the borrowing will not necessarily come from one source,” he said.
The Senate President added that the Federal Government would explore different funding options to secure the most favourable borrowing terms.
“The government will have to explore the available options and secure the best possible terms under a willing-seller, willing-buyer arrangement,” he said.
Akpabio subsequently referred the request to the Senate Committee on Local and Foreign Debts for consideration and directed it to report back as soon as practicable.
## How Tinubu Plans to Raise the $7.7bn
According to the presidential letter, the Federal Government intends to source the proposed $7.7 billion through one or a combination of several financing options.
These include concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund (IMF) facilities, bridge financing, direct borrowing from international financial institutions and eurobond issuance.
Tinubu said the options would be pursued simultaneously, with consideration given to their respective costs, benefits and the time required to access the funds.
However, the president indicated that greater emphasis would be placed on eurobond issuance because of its relatively faster execution timeline and capacity to generate larger amounts at competitive costs.
“The final terms and conditions, including interest rates and tenures, will be determined at the time of pricing, depending on prevailing market conditions,” he said.
He added that the Federal Ministry of Finance and the Debt Management Office (DMO) would work to ensure that Nigeria secured the most favourable terms.
Tinubu said the proposed external borrowing would be used to finance priority programmes and projects captured in the 2026 Appropriation Act, particularly in defence and security, transportation, agriculture, power, education and healthcare.
The president also projected that the foreign financing would help strengthen Nigeria’s external reserves, explaining that the funds would be received by the Central Bank of Nigeria (CBN) on behalf of the Federal Government.
“This, in turn, is expected to support the stability of the naira,” he said.
Tinubu therefore asked the National Assembly to authorise the Federal Government to raise the N10.79 trillion external loan and approve the use of one or more of the proposed financing options, with greater emphasis on eurobond issuance.
He also sought approval for the Minister of Finance and Coordinating Minister of the Economy to work with the DMO to implement the proposed borrowing arrangement.
The president expressed hope that the Senate would pass the necessary resolution in a timely manner.
