PRESIDENT Bola Tinubu has asked the National Assembly of Nigeria to approve a N9 trillion increase to the 2026 budget, alongside fresh external borrowing totalling $6 billion to support government spending, infrastructure, and debt obligations.
The President’s request has also raised several questions regarding the benefits of subsidy removal and the current oil windfall from proceeds driven by the US-Iran conflict, as Brent crude is now selling at about $118 per barrel compared to the budgeted benchmark of $64.85 for the 2026 appropriation.
The requests were conveyed in separate letters read on the Senate floor by the Senate President, Godswill Akpabio, during Tuesday’s March 31 plenary.
Tinubu, who was seeking to raise the proposed 2026 budget from N58.4 trillion to N67.4 trillion, cited the need to strengthen fiscal transparency and ensure effective implementation of key national programmes.
“The proposed adjustment is aimed at strengthening fiscal transparency and ensuring the effective implementation of priority national programmes,” part of the letter read.
Tinubu said the upward review will allow the government to settle outstanding legal commitments from previous budgets, properly account for existing public debt, and accommodate critical priority projects while maintaining macroeconomic stability.
He added that the adjustment is also aimed at aligning the financing plan to reduce pressure on the domestic financial market.
The ICIR reported that Tinubu had in December 2025, presented the 2026 federal budget of N58.18 trillion to the National Assembly on December 19, 2025, with a ‘conservative’ crude oil benchmark of $64.85 per barrel.
“The 2026–2028 Medium‑Term Expenditure Framework and Fiscal Strategy Paper sets the parameters for this budget. Our projections are based on a conservative crude oil benchmark of US$64.85 per barrel; crude oil production of 1.84 million barrels per day; and an exchange rate of N1,400 to the US Dollar for the 2026 fiscal year,” he said.
The budget carries a deficit of N23.85 trillion, representing 4.28 per cent of gross domestic product (GDP).
$6bn external loans
In addition to the budget increase, Tinubu requested legislative approval to secure external loans amounting to $6 billion in two separate letters addressed to Akpabio.
In the first letter, the president sought approval from First Abu Dhabi Bank in the United Arab Emirates for a $5 billion structured total return swap financing programme.
According to him, the facility would be disbursed in tranches to support budget implementation, infrastructure development, and liquidity management.
“The purpose of this letter is to request for the approval and resolution of the national assembly pursuant to the provisions of section 21(1) and 27(1) of the debt management office establishment act 2003 to establish a structured total return swap (TRS) derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion which will be made available to the Federal Republic of Nigeria in tranches,” the letter read.
Tinubu noted that the funds would also be used to repay more expensive domestic and external debts and meet urgent financial obligations.
He acknowledged that the borrowing would increase Nigeria’s public debt stock, which he put at $110.3 billion (about ₦159.2 trillion) as of December 31, 2025, but said the phased drawdown would help minimise pressure on debt servicing.
In another separate letter, the president also requested approval for a separate $1 billion loan facility arranged by Citibank, London, to finance the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
“The rehabilitation of the ports project is a strategic modernisation initiative of the Federal Government of Nigeria through the Nigerian Ports Authority to restore and upgrade two of Nigeria’s most vital ports, namely Tin Can Island Port complex and Lagos Port complex, Apapa, which have reached critical engineering failures,” the letter read.
Tinubu added that the ports handle the bulk of Nigeria’s seaborne trade and are vital to efforts to diversify the economy beyond oil.
Following the presentation, Akpabio referred the requests to the Senate Committee on Local and Foreign Debts for further legislative consideration.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M