By Adamu Yusuf
President Bola Ahmed Tinubu has asked the Senate to approve a proposed external borrowing of 10.79 trillion naira, equivalent to 7.707 billion dollars, to finance part of the 2026 budget deficit.
The request was contained in a letter dated October 26, 2026, addressed to the President of the Senate, Godswill Akpabio, seeking the National Assembly’s resolution to implement the external borrowing provision in the 2026 Appropriation Act.
President Tinubu explained that the proposed borrowing, amounting to 10 trillion, 790 billion, 366 million, 835 thousand, 481 naira, was equivalent to 7,707,404,882 dollars and 49 cents, at the budget exchange rate of 1,400 naira to one dollar.
He said the request was in compliance with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require external loan terms and conditions to be submitted to and approved by the National Assembly.
The President recalled that the 2026 Appropriation Act provided for total new borrowings of approximately 29.2 trillion naira, comprising 18.4 trillion naira in domestic borrowing and 10.79 trillion naira in external borrowing, to finance the budget deficit.
According to him, the Federal Government plans to raise the external borrowing through one or a combination of funding sources, including concessional and commercial facilities from multilateral and bilateral institutions, the International Monetary Fund, bridge financing facilities, loan syndications and Eurobond issuance.
He said greater emphasis would be placed on Eurobonds because of the relatively shorter time required to conclude the process and the potential to raise substantial funds at comparatively lower costs.
The President noted that the final interest rates and other terms of the Eurobond issuance would be determined by prevailing market conditions at the time of pricing.
He assured the Senate that the Federal Ministry of Finance and the Debt Management Office would work together to secure the most favourable borrowing terms for the country.
President Tinubu said the proposed external borrowing would finance critical projects and programmes in the 2026 budget, particularly in the priority sectors of defence and security, transportation, agriculture, power, education and health.
He added that the borrowing would help consolidate the administration’s macroeconomic reforms and sustain the gains recorded in recent years.
The President also explained that the proceeds would strengthen the country’s external reserves, as the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby providing support for the stability of the naira.
In the proposed resolution, President Tinubu requested the Senate to authorise the Federal Government to implement the 10.79 trillion naira external borrowing and empower the Minister of Finance and Coordinating Minister of the Economy, working with the Debt Management Office, to take all necessary steps to give effect to the resolution.
Following the presentation of the letter, the President of the Senate, Godswill Akpabio, referred the request to the Senate Committee on Local and Foreign Debts for further legislative consideration and to report back as soon as practicable.
Editing by Khadija Kubau
