The Senate has referred President Bola Tinubu’s request for approval to borrow $7.7 billion (N10.79 trillion) externally to its Committee on Local and Foreign Debts for scrutiny.
Tinubu’s request, contained in a letter dated October 26, 2026, was read during Wednesday’s plenary, after which the Senate President, Godswill Akpabio, directed the committee to examine the proposal and report back as soon as practicable.
The proposed borrowing is part of the N29.2 trillion new borrowing provision in the 2026 Appropriation Act, designed to finance a budget deficit estimated at N31.4 trillion. The borrowing plan comprises N18.4 trillion in domestic loans and N10.79 trillion in external financing.
In the letter, Tinubu said the request complied with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require National Assembly approval for external borrowing.
The President said the government would explore several financing options, including Eurobonds, concessional and commercial loans from multilateral and bilateral institutions, IMF facilities, bridge financing and syndicated loans. However, he indicated that Eurobond issuance would receive priority because of its relatively faster processing and capacity to raise substantial funds.
He said the final interest rates, maturity periods and other conditions would depend on prevailing market realities, assuring lawmakers that the Finance Ministry and Debt Management Office would negotiate the most favourable terms for the country.
Tinubu listed defence and security, transportation, agriculture, power, education and healthcare as priority sectors expected to benefit from the proposed loans. He argued that the funds would support critical projects under the 2026 budget, consolidate economic reforms and strengthen macroeconomic stability.
The President also said the borrowing would boost Nigeria’s foreign reserves, as the proceeds would be received by the Central Bank of Nigeria (CBN) on behalf of the Federal Government, providing additional support for the Naira and the country’s external position.
Akpabio, while commenting on the request, stressed the need for the government to secure favourable borrowing conditions, warning against agreements that could impose unfavourable obligations on the country. He said Nigeria must pursue a “win-win” arrangement with prospective lenders.
The Senate committee is expected to scrutinise the proposed financing sources, loan terms and implications for the country’s debt obligations before the chamber takes a final decision.