-
President Bola Tinubu replaces an earlier $20.52 billion and €1.05 billion external borrowing proposal with a $7.7 billion request.
-
The revised plan represents the ₦10.79 trillion external borrowing provision in Nigeria’s 2026 budget.
-
Eurobonds are the preferred financing option, although interest rates and repayment terms remain undetermined.
-
Nigeria’s public debt reached ₦166.79 trillion in June 2026, with external obligations accounting for ₦75.2 trillion.
November 5, (THEWILL) – President Bola Tinubu has replaced an earlier $20.52 billion external borrowing proposal with a $7.7 billion request, favouring Eurobonds as Nigeria seeks quicker access to international financing for its 2026 budget.
The revised request, contained in a letter dated October 26 and read during Wednesday’s Senate plenary, seeks approval to raise $7,707,404,882.49, equivalent to approximately ₦10.79 trillion at the budget exchange rate of ₦1,400 per dollar.
Senate President Godswill Akpabio confirmed that the proposal supersedes an earlier request covering $20.52 billion and €1.05 billion under the 2026–2027 Supplementary External Borrowing Plan.
Rather than seeking a fresh borrowing allocation outside the budget, Tinubu said the new request would implement the external financing already approved in the 2026 Appropriation Act.
That distinction is significant because the earlier, substantially larger proposal had raised questions about the scale of Nigeria’s borrowing requirements and how the funds would be applied.
Why Nigeria Is Turning Towards Eurobonds
Nigeria’s 2026 budget provides for ₦29.2 trillion in new borrowing, comprising ₦18.4 trillion from domestic sources and ₦10.79 trillion externally.
Tinubu’s letter outlines several possible financing channels, including international financial institutions, commercial loans and Eurobond issuance. The government intends to examine these options simultaneously, taking account of borrowing costs, available amounts and the time required to obtain the funds.
Eurobonds have received particular attention because they can allow Nigeria to raise substantial dollar financing through international capital markets without the longer negotiations sometimes associated with project-specific or bilateral lending.
The president told lawmakers that the government would emphasise Eurobond issuance because such transactions could be concluded relatively quickly and potentially offer competitive financing terms.
However, the final interest rates, repayment periods and other conditions will depend on market pricing when the bonds are issued.
That exposes the government to a trade-off. Commercial bond markets can provide comparatively rapid access to capital, but borrowing costs reflect prevailing global interest rates, investor appetite and perceptions of Nigeria’s creditworthiness.
Unlike some concessional development loans, Eurobonds generally carry market-based interest rates and repayment obligations denominated in foreign currency.
Nigeria’s existing international bonds illustrate the range of costs involved. Indicative secondary-market yields on November 3 ranged from approximately 5.5% for a bond maturing in 2027 to more than 8% for longer-dated securities.
Those yields are not quotations for the proposed borrowing, but they provide context for the returns investors currently demand to hold Nigerian sovereign debt.
READ ALSO:
New Borrowing Meets Existing Debt Obligations
Nigeria’s total public debt stood at ₦166.79 trillion at the end of June 2026, according to the Debt Management Office, representing a 9.4% increase from ₦152.4 trillion a year earlier.
Domestic obligations accounted for ₦91.59 trillion, while external debt reached ₦75.2 trillion, equivalent to approximately $54.52 billion.
A successful Eurobond issuance could increase Nigeria’s foreign-currency inflows and provide financing for government programmes. Tinubu also expects the additional dollar liquidity to support external reserves and the naira.
Borrowing proceeds, however, must eventually be repaid. Dollar-denominated obligations create exposure to exchange-rate movements because a weaker naira increases their domestic-currency cost, even when the original dollar amount remains unchanged.
Interest payments also compete with other government spending priorities, making the eventual financing terms important to Nigeria’s fiscal position.
Beyond the borrowing cost, lawmakers will need to establish how the funds relate to budget implementation and what reporting arrangements will allow the public to track their use.
Akpabio has referred the request to the Senate Committees on Local and Foreign Debts and Appropriations for scrutiny before further legislative consideration.
Their examination will determine the proposed financing authority, while the actual cost of borrowing will remain uncertain until the government negotiates or prices its chosen instruments.
The immediate decision for Nigeria concerns how quickly the government can raise the dollars required to support its budget, while the longer-term financial consequence will depend on the interest rates agreed, the maturity structure of the borrowing and the country’s ability to service its obligations without placing greater pressure on future revenues.
Joy Onuorah is a business journalist and brand communications specialist covering financial markets, artificial intelligence, digital economy, and the ideas reshaping business across Africa and the global market. Beyond her reporting for TheWill, Joy uses brand strategy, storytelling, copywriting, and high-value SEO to help brands build lasting market authority.
