Tinubu Writes Senate, Seeks Approval For Fresh $7.7bn Foreign Loan

President Bola Tinubu has asked the Senate to approve a fresh $7.7 billion foreign loan, equivalent to N10.79 trillion, to help finance Nigeria’s 2026 budget deficit, adding to the country’s growing borrowing commitments.

The request was conveyed in a letter dated October 26, 2026, which was read by Senate President Godswill Akpabio during Wednesday’s plenary session.

In the letter, Tinubu sought the National Assembly’s approval to implement the external borrowing component of the 2026 Appropriation Act, which forms part of the Federal Government’s total planned borrowing of N29.2 trillion.

The President explained that the approved borrowing plan comprises N18.4 trillion in domestic loans and N10.79 trillion in external financing, with the latter expected to cover part of the budget deficit estimated at N20.23 trillion.

Tinubu said the proposed foreign loan would support the execution of projects and programmes contained in the 2026 budget, particularly in critical sectors such as defence and security, transportation, agriculture, electricity, education and healthcare.

He disclosed that the government intends to explore several financing options simultaneously, with particular emphasis on Eurobond issuance because of the relatively shorter period required to raise funds and the possibility of obtaining larger amounts at lower costs.

The President, however, explained that the final interest rates, repayment periods and other conditions attached to the Eurobond would depend on prevailing market conditions when the securities are issued.

He added that the Federal Ministry of Finance and the Debt Management Office would work together to secure the most favourable borrowing terms for the country.

Tinubu also argued that the proceeds would help strengthen Nigeria’s external reserves and support the naira, explaining that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.

Following the presentation of the letter, Akpabio expressed the belief that the latest borrowing request effectively supersedes an earlier proposal seeking approval for $20.52 billion and €1.045 billion in external financing.

The Senate President subsequently referred the request to the Committee on Local and Foreign Debts for further legislative consideration.

Recall that Tinubu had last week approached both chambers of the National Assembly seeking approval for external borrowing facilities totalling $20.52 billion and €1.045 billion under the Federal Government’s 2026–2027 Supplementary External Borrowing Rolling Plan.

The earlier proposal was intended to finance projects across infrastructure, agriculture, healthcare, education, water supply, security and employment generation.