President Bola Tinubu has written to the House of Representatives seeking statutory approval to implement the N10.79 trillion external borrowing provided for in the 2026 Appropriation Act.
The President said the proposed borrowing would partially finance the 2026 budget deficit and support the implementation of projects captured in the Appropriation Act.
The request was contained in a letter from Tinubu, which was read on the floor of the House during plenary by Speaker Tajudeen Abbas.
The President said the funds would help strengthen the macroeconomic gains recorded so far.
Tinubu seeks N10.79 trillion loan approval
President Tinubu stated in the letter that the 2026 Appropriation Act provided for N29.2 trillion in new borrowings to help finance the budget deficit, which is estimated at N31.4 trillion.
He explained that the total borrowing requirement comprises N18.4 trillion in new domestic borrowing and N10.79 trillion in external borrowing.
President Tinubu said the request seeks approval for N10.79 trillion, equivalent to $7.70 billion at the budget exchange rate of N1,400 per dollar.
He said the external financing would be sourced through various channels, including Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, as well as International Monetary Fund facilities.
Other sources would include bridge financing, loan syndications and direct borrowing from international financial institutions.
How Tinubu plans to raise funds
President Tinubu noted that emphasis would be placed on Eurobond issuance, which is typically faster to conclude. He added that all available financing options would be pursued simultaneously, taking into account their costs, relative benefits and the time required to access the funds.
- The President explained that the proceeds would be directed towards critical capital projects across key sectors of the economy.
- The targeted sectors include infrastructure, defence and security, agriculture, healthcare, power, transportation and education.
- He also sought authorisation for 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 borrowing arrangement once approved.
Tinubu urged the lawmakers to grant prompt approval to enable the executive to implement capital programmes and infrastructure projects captured in the 2026 budget.
Following the reading of the letter, the House referred the request to the joint committees on Aids, Loans and Debt Management, and Finance for further legislative action.
What you should know
In July 2025, the Senate approved the 2025–2026 external borrowing plan of $21.5 billion presented by President Bola Tinubu for consideration.
The approval followed the presentation of a report by the Senate Committee on Local and Foreign Debts at plenary by its chairman, Senator Aliyu Wamakko.
The Senate also approved a loan request of 15 billion Japanese yen and a grant of 65 million euros.
Additionally, the lawmakers approved the issuance of a Federal Government bond worth N757 billion to settle accrued pension rights arrears as of December 2023 under the Contributory Pension Scheme (CPS).
