Tinubu seeks Senate approval for fresh N10.79trn loan

The Senate has received a request from President Bola Tinubu seeking approval for N10.79 trillion ($7.7 billion) external borrowing to finance part of the 2026 budget deficit.

Tinubu’s request was contained in a letter seeking the National Assembly for the implementation of external borrowings approved in the 2026 Appropriation Act.

Reading the letter during plenary in Abuja on Wednesday, November 4, 2026, Senate President Godswill Akpabio said the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003.

In the letter, Tinubu recalled that the 2026 Appropriation Act provided for N29.2 trillion in new borrowings to finance a budget deficit of about N31.4 trillion.

Tinubu explained that the borrowing comprised N18.4 trillion domestic borrowing and N10.79 trillion external borrowing, with the latter forming the subject of the request.

The president said the federal government planned to raise $7.7 billion through one or a combination of available funding sources.

He said the proposed sources included concessional and commercial loans from multilateral and bilateral institutions, the International Monetary Fund, bridge financing facilities, direct borrowing from international financial institutions and Eurobond issuance.

Tinubu stated that the options would be pursued simultaneously, considering their respective costs, benefits and the time required to access the funds.

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Tinubu, however, said greater emphasis would be placed on Eurobond issuance because it was generally faster to conclude and could raise larger amounts at relatively competitive costs.

Tinubu noted that the final borrowing terms, including interest rates and tenures, would depend on prevailing market conditions at the time of pricing.

He assured that the Federal Ministry of Finance and the Debt Management Office would work to secure the best possible terms for the country.

The president said the proposed borrowing would finance priority projects in defence and security, transportation, agriculture, power, education and health.

He noted that the funds would be received by the Central Bank of Nigeria (CBN) on behalf of the federal government and would also support external reserves.

Reacting after reading the letter, Akpabio said the latest request superseded an earlier request for $20.3 billion, describing the new correspondence as more explicit.

Akpabio said the government would explore different funding sources to secure the most favourable borrowing terms through a willing-seller, willing-buyer arrangement.

The Senate President subsequently referred the request to the Committee on Local and Foreign Debt to report back to the Senate as soon as practicable.