President Bola Tinubu has asked the Senate to approve external borrowings of $7.707 billion, equivalent to about N10.79 trillion, to finance part of the 2026 budget deficit.
The request was contained in a letter dated October 26, 2026, which was read during Wednesday’s plenary by Senate President Godswill Akpabio.
Tinubu said the proposed borrowing would be sourced mainly through Eurobond issuance, alongside facilities from multilateral and bilateral institutions, international financial organisations and syndicated loan arrangements.
He explained that the funds would help finance the budget deficit, strengthen Nigeria’s external reserves and support the stability of the naira.
The President noted that the 2026 Appropriation Act provides for total new borrowings of about N29.2 trillion, comprising N18.4 trillion in domestic loans and N10.79 trillion in external financing.
According to him, the external borrowing request is in line with Sections 21(1) and 27(1) of the Debt Management Office Act, 2003, which require National Assembly approval for external loan agreements.
Tinubu said the government would prioritise Eurobond issuance because of the relatively shorter time required to raise funds and the potential to secure substantial financing, with final interest rates determined by prevailing market conditions.
He added that the proceeds would be invested in critical sectors, including defence and security, transportation, agriculture, power, education and healthcare, as well as support ongoing macroeconomic reforms.
The President also said funds received by the Central Bank of Nigeria on behalf of the Federal Government would help boost external reserves and strengthen the naira.
He asked the Senate to authorise the borrowing and empower 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 financing plan.
Following the presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts for further legislative consideration and submission of its report.
