PRESIDENT Bola Tinubu has asked the Senate to approve a fresh external borrowing of $7.7 billion, approximately N10.79 trillion to finance part of the Federal Government’s 2026 budget deficit.
The request came barely a week after his sought a similar approval for a supplementary external borrowing plan involving $20.52 billion and €1.05 billion to finance infrastructure and development projects across Nigeria.
The latest request was contained in a letter dated October 26, 2026, which Senate President Godswill Akpabio read during plenary on Wednesday.
Tinubu sought legislative approval to raise N10,790,366,835,481 (nearly N11 trillion), based on the 2026 budget exchange rate of N1,409 to the dollar.
Reacting to the correspondence, Akpabio said the latest request effectively replaces an earlier proposal seeking approval for $20.3 billion in external borrowing, describing the new submission as more specific about the amount and financing arrangements.
“I believe this letter effectively supersedes the earlier request for 20.3 billion US dollars because the present request is more explicit,” Akpabio said.
He explained that the government would not necessarily obtain the entire amount from a single source but would explore different financing options to secure favourable borrowing terms.
The ICIR reports that the request is coming less than three months to the 2027 election, in which Tinubu is seeking a re-election for another four-year term.
The president in his latest letter recalled that the 2026 Appropriation Act provided for N29.2 trillion in new borrowing to finance a budget deficit estimated at N31.4 trillion, and under the borrowing plan, N18.4 trillion is expected to come from domestic sources, while N10.79 trillion is to be raised externally.
Tinubu said the government intended to raise the $7.7 billion through a combination of concessional and commercial loans from multilateral and bilateral institutions, the International Monetary Fund (IMF), bridge financing facilities, direct borrowing from international financial institutions and Eurobond issuance.
He explained that the different financing options would be pursued simultaneously, taking into account their costs, benefits and the time required to access the funds.
However, the president said priority would be given to Eurobond issuance because of its relatively faster completion and capacity to raise substantial funds at competitive rates.
On the cost of the proposed borrowing, Tinubu said the interest rates, repayment periods and other conditions would depend on prevailing market conditions when the funds are raised.
He added that the Federal Ministry of Finance and the Debt Management Office would work together to negotiate favourable terms for the country.
According to the president, the proposed loan would support the implementation of projects and programmes captured in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.
Tinubu also argued that the borrowing could strengthen Nigeria’s external reserves and support the stability of the naira.
He said the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby contributing to the country’s foreign reserves.
The president made the request pursuant to Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require external borrowing arrangements to be submitted to the National Assembly for approval.
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 secure and implement the borrowing.
Following the presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debt for further consideration and directed it to report back to the chamber as soon as practicable.
The Senate is expected to consider the committee’s recommendations before deciding whether to approve the proposed $7.7 billion loan.
The ICIR reported on Tuesday, October 27, that Tinubu asked the Senate to approve a supplementary external borrowing plan involving $20.52 billion and €1.05 billion to finance infrastructure and development projects across Nigeria.
The request was presented to the Senate during plenary by Akpabio, who said the proposal would be referred to the Senate Committee on Local and Foreign Debts for consideration.
The proposed financing comprises $20,517,755,901 and €1,045,083,643 under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan.
In a letter, Tinubu urged the National Assembly to consider and approve the plan promptly to facilitate the implementation of the proposed projects, noting that the financing would support investments in infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms.
The request comes as Nigeria’s public debt continues to rise.
According to the Debt Management Office (DMO), the country’s total public debt stood at N166.79 trillion as of June 30, 2026, comprising domestic and external obligations owed by the Federal Government, state governments and the Federal Capital Territory.
The figure represented an increase of N7.44 trillion from N159.35 trillion recorded at the end of March 2026. It was also N14.39 trillion higher than the N152.40 trillion recorded in June 2025.
The DMO’s breakdown showed that domestic debt accounted for N91.59 trillion, while external debt stood at N75.20 trillion.
The Federal Government accounted for N152.77 trillion of the total, while state governments and the FCT accounted for the remaining N14.01 trillion.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.