By Nathaniel Zaccheaus, Abuja
President Bola Tinubu has asked the Senate to approve a revised external borrowing plan of $7.707 billion, equivalent to N10.79 trillion, to finance part of the Federal Government’s 2026 budget deficit.
The fresh request replaces an earlier proposal seeking approval for $20.52 billion and €1.045 billion in external loans, significantly reducing the amount the government intends to raise from foreign sources.
Senate President Godswill Akpabio disclosed this during plenary on Wednesday while reading a fresh presidential communication dated October 26, 2026.
Tinubu explained that the proposed external borrowing formed part of the N29.2 trillion new borrowing provision in the 2026 budget, which is designed to finance an estimated N31.4 trillion deficit.
Under the revised financing arrangement, the Federal Government plans to raise N10.79 trillion externally and N18.4 trillion from the domestic debt market.
The President identified Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities and bridge financing as possible sources of the funds.
He said the government would prioritise Eurobonds because of their relatively faster processing and capacity to generate substantial funds at comparatively lower 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,” Tinubu stated.
He added that the Finance Ministry and the Debt Management Office would work together to secure the most favourable borrowing terms, subject to prevailing market conditions.
The President said the funds would finance projects and programmes captured in the 2026 Appropriation Act, particularly in defence and security, transportation, agriculture, power, education and healthcare.
“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 also argued that the foreign currency proceeds would strengthen Nigeria’s external reserves and support exchange-rate stability.
He said the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby increasing the country’s reserves.
The President anchored his request on Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which provide for legislative approval of external borrowing.
He sought authorisation to raise the $7.707 billion using the 2026 budget exchange rate of N1,400 to the dollar and empowered the Finance Minister, in collaboration with the DMO, to implement the arrangement.
Explaining the revised proposal, Akpabio said it effectively cancelled the earlier request for $20.52 billion and €1.045 billion, which he presented to the Senate on October 27.
“I believe this letter effectively cancels the earlier request that was sent for $20-something billion. But this is much more explicit,” he said.
Akpabio explained that the government intended to explore different international financing sources rather than depend on a single market or institution.
“This also takes cognisance of the fact that the borrowing is not going to take effect from only one location. So we have to go out there and search for the best terms, what we may call a willing-seller, willing-buyer approach,” he added.
The Senate President referred the request to the Senate Committee on Local and Foreign Debts for scrutiny and directed it to report back as soon as practicable.
The proposal comes amid concerns over Nigeria’s rising public debt and debt-servicing obligations, with lawmakers expected to examine the terms of the proposed facilities and the government’s capacity to manage additional external borrowing.
