President Bola Tinubu has asked the House of Representatives to authorise the Federal Government to access $7.71bn (N10.79 trillion) in external loans already captured in the 2026 Appropriation Act, with Eurobond issuance expected to be a major funding option.
The request, contained in a letter to the Speaker of the House, Tajudeen Abbas, was read during Wednesday’s plenary.
Tinubu said the proposed borrowing would help finance part of the Federal Government’s budget deficit and fund projects across critical sectors, including defence, transportation, agriculture, power, education and health.
Start tomorrow informed
Save your place for the morning brief. We’ll start emailing when delivery goes live.
Free. Confirm by email. Unsubscribe anytime.
The President explained that the N10.79tn external borrowing was part of the N29.22tn approved new borrowing in the 2026 budget, which also includes N18.28tn in domestic loans.
He requested approval to raise $7.71bn at the budget exchange rate of N1,400 to a dollar, in line with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003.
Tinubu said the government would explore several funding options simultaneously, but would prioritise Eurobonds because of the speed of issuance and relatively lower borrowing costs.
“All options will be pursued simultaneously, considering the cost-benefit to the country as well as the time required to access the funds,” he said.
He added that the final terms of the Eurobond issuance would depend on prevailing international market conditions.
The President said the Ministry of Finance and the Debt Management Office would work together to secure favourable borrowing terms.
He also explained that the external loans would support the country's foreign reserves and the naira, noting that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
In seeking the House's authorisation, Tinubu listed multilateral and bilateral institutions, conventional and commercial lending windows, the International Monetary Fund, bridge financing facilities and Eurobond issuance as possible sources of the funds.
He also requested approval for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the DMO, to take necessary steps to implement the borrowing arrangement.
However, Abbas clarified that the President was not seeking approval for a fresh borrowing plan, as the N10.79tn external component had already been provided for in the 2026 Appropriation Act.
According to the Speaker, the request was specifically to obtain the statutory approval required for the terms and conditions of external loans before implementation.
He cited Sections 21(1) and 27(1) of the DMO Act, which require the terms and conditions of external borrowing to be presented to the National Assembly for approval.
Abbas also said the request was separate from another proposal by the President for additional borrowing, which would be considered independently.
“For the avoidance of doubt, this request is distinct from the President’s more borrowing request. It neither supersedes nor withdraws that request, which remains subject to consideration on its own merit,” he said.
The clarification comes amid concerns over the Federal Government's growing reliance on borrowing to finance budget deficits and the implications for public debt sustainability.
Nigeria's 2026 budget provides for a deficit of N31.55tn, with N29.22tn expected to come from new borrowing.
The latest request, therefore, seeks legislative authorisation to access the external component of the borrowing already approved in the budget rather than introduce a fresh loan figure.
Discussion0