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President Bola Tinubu has sought Senate approval for a fresh $7.7 billion external borrowing plan, equivalent to about ₦10.79 trillion at the budget exchange rate of ₦1,400 to the dollar.
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The proposed loan is expected to part-finance the ₦20.2 trillion deficit in the 2026 budget, while strengthening external reserves and supporting the stability of the naira.
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The financing will be sourced through Eurobond issuance, loans from multilateral and bilateral institutions, international financial institutions and syndicated loan arrangements.
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Senate President Godswill Akpabio said the new request supersedes an earlier $20.52 billion borrowing proposal submitted last week, referring it to the Committee on Local and Foreign Debts for consideration.
November 04, (THEWILL) – President Bola Tinubu has asked the Senate to approve a fresh external borrowing plan of $7.7 billion to part-finance the ₦20.2 trillion deficit in the 2026 Appropriation Act.
The request, equivalent to approximately ₦10.79 trillion at the budget exchange rate of ₦1,400 to the dollar, was conveyed in a letter read by Senate President Godswill Akpabio during plenary.
The proposed borrowing comes as the Federal Government seeks additional funding to implement the 2026 budget amid revenue shortfalls and rising expenditure obligations.
Funds To Come From Eurobonds, Multilateral Loans
In the letter, Tinubu explained that the proposed funds would be raised through a combination of Eurobond issuance, loans from multilateral and bilateral institutions, international financial institutions and syndicated loan arrangements.
He said the borrowing would help finance the budget deficit, strengthen Nigeria’s external reserves and support the stability of the naira.
The President also sought the Senate’s authorisation for the Minister of Finance and the Debt Management Office (DMO) to take the necessary steps to implement the borrowing plan.
The proposed $7.7 billion facility represents a significant component of the Federal Government’s financing arrangements for the 2026 fiscal year.
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New Request Replaces $20.52bn Proposal
Explaining the development, Akpabio indicated that the latest request supersedes an earlier external borrowing proposal of $20.52 billion submitted by the President last week.
The new submission provides details of the proposed $7.7 billion financing plan and the channels through which the Federal Government intends to raise the funds.
The change in the borrowing request was communicated to the Senate during plenary, where lawmakers were formally notified of the President’s revised proposal.
Following the presentation of the letter, Akpabio referred the borrowing request to the Senate Committee on Local and Foreign Debts for further legislative consideration.
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