Tinubu seeks Reps approval to implement a ₦10.79tn external borrowing plan already included in Nigeria’s 2026 budget

President Bola Tinubu has asked the House of Representatives to approve the implementation of the Federal Government’s ₦10.79tn external borrowing plan for 2026, seeking authorisation to raise approximately $7.71bn to finance part of the budget deficit.

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Tinubu made the request in a letter addressed to the Speaker of the House, Tajudeen Abbas, which was read during Wednesday’s plenary.

The President said the proposed external borrowing amounted to ₦10,790,366,835,481, equivalent to $7,707,404,882.49 at the budget exchange rate of ₦1,400 to the dollar.

He explained that the request was made in accordance with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which require the terms and conditions of external loans to be presented to and approved by the National Assembly.

According to the President, the external borrowing forms part of the ₦29.22tn new borrowing approved under the 2026 Appropriation Act to finance the Federal Government’s budget deficit.

The approved borrowing comprises ₦18.28tn in domestic loans and ₦10.79tn in external financing.

Tinubu said the government would pursue several funding options simultaneously, taking into account borrowing costs and the time required to access the funds.

However, he indicated that the administration would place greater emphasis on Eurobond issuance, describing it as a relatively faster way to raise substantial funds.

“All options will be pursued simultaneously considering the cost of benefit to the country as well as the time required to access the funds. In view of this, emphasis will be on the issuance of Eurobonds which is typically faster to conclude,” he said.

The President added that the final terms and conditions of any Eurobond issuance would depend on prevailing international market conditions when the funds were priced.

He assured lawmakers that the Ministry of Finance and the Debt Management Office would work to secure favourable borrowing terms for the country.

Tinubu said the proceeds would support projects and programmes provided for in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.

He also argued that the external funds would help strengthen Nigeria’s foreign reserves and support the naira, noting that the Central Bank of Nigeria would receive the proceeds on behalf of the Federal Government.

The President requested authorisation to raise the funds through multilateral and bilateral institutions, conventional and commercial lending windows, the International Monetary Fund, bridge financing facilities and Eurobond issuance.

He also sought approval for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the DMO, to take the necessary steps to implement the borrowing arrangement.

Responding to the letter, Abbas clarified that the President was not seeking approval for a fresh borrowing plan. He said the ₦10.79tn external component had already been approved by the National Assembly and included in the 2026 Appropriation Act.

According to the Speaker, the latest request is intended to fulfil the statutory requirement for parliamentary approval of the terms and conditions governing external loans before the government can proceed with implementation.

Abbas explained that Section 21(1) of the DMO Act requires the National Assembly to approve the terms and conditions of external borrowing by resolution, while Section 27(1) provides for approval of standard terms and conditions for negotiating and accepting external loans.

He also stressed that the request was separate from another proposal by the President for additional borrowing, which remains subject to consideration on its own merits.

“For the avoidance of doubt, this request is distinct from the president’s more borrowing request. It neither supersede nor withdraw that request which remain subject to consideration on its own merit,” Abbas said.

Nigeria’s 2026 budget provides for a deficit of ₦31.55tn, with the ₦29.22tn new borrowing plan identified as a major source of financing.

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The latest request therefore concerns the legislative authorisation needed to access the external component of the borrowing already provided for in the budget, rather than the introduction of a new borrowing figure.