Tinubu asks NASS to approve new N10.9 trillion loan
President Bola Tinubu has requested the approval of the National Assembly for a new external borrowing plan of $7.7 billion, equivalent of N10.9 trillion to finance the 2026 budget deficit.
The has withdrawn the earlier request to the National Assembly to approve the processing of external loans worth $20.5 billion and €1.05 billion.
The new request, which seeks approval for $7,707,404,882.49, was in a letter read by Senate President Godswill Akpabio during plenary on Wednesday.
According to Tinubu, the proposed borrowing is intended to finance a N20.2 trillion budget deficit to finance critical projects across various sectors, including infrastructure, defence, agriculture, healthcare, power and education.
He said the projects were designed to stabilise and strengthen the macroeconomic reforms of the administration.
The new request provides more details about the proposed borrowing, including the sources of funds and the conditions under which they would be raised.
Tinubu said the foreign loan would be sourced through several options, with emphasis on Eurobonds.
“In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude. Additionally, a larger amount can be raised through Eurobonds at a relatively lower cost in respect to the terms and conditions of the Eurobond,” he said.
According to the president, the 2026 Appropriation Act approved N29.2 trillion in new borrowing to partly finance the budget deficit of about N31.4 trillion.
The approved borrowing comprises N18.4 trillion in domestic borrowing and N10.79 trillion in external borrowing.
After reading the letter, Mr Akpabio referred the request to the Senate Committees on Local and Foreign Debts and Appropriations for further scrutiny.
He directed the committees to report back as soon as practicable.
It could be recalled that last Tuesday, Akpabio read an earlier executive communication in which Tinubu sought approval to process external loans worth $20,517,755,901 and €1,045,083,643 under the 2026–2027 Supplementary External Borrowing Plan.
In March, the National Assembly also approved a $6 billion external borrowing plan for the federal government.
The latest borrowing request comes amid concerns about Nigeria’s rising public debt and the growing cost of servicing government obligations.
Nigeria’s debt burden has increased in recent years as the federal government continues to rely on domestic and external borrowing to finance budget deficits and infrastructure projects.
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