Tinubu Seeks Reps’ Approval for N10.79trn External Loans
President Bola Tinubu has sought the House of Representatives’ approval of the terms and conditions for accessing $7.71 billion (N10.79 trillion) in external loans, with the Federal Government planning to rely heavily on Eurobond issuance to finance part of the 2026 budget deficit.
In a letter read during Wednesday’s plenary, Tinubu requested legislative authorisation to implement the external borrowing component of the N29.22 trillion new borrowing provision in the 2026 Appropriation Act.
The proposed external financing, equivalent to N10.79 trillion at the budget exchange rate of N1,400 to the dollar, represents part of the government’s planned borrowing of N29.22 trillion, comprising N18.28 trillion in domestic loans and N10.79 trillion in external financing.
Addressing the Speaker, Tajudeen Abbas, the President said the request was in compliance with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which require the National Assembly to approve the terms and conditions governing external borrowing.
He said the government intended to pursue different financing options simultaneously, taking into account borrowing costs and the time required to access the funds.
However, Tinubu indicated that Eurobond issuance would receive greater attention because of its relatively faster execution and capacity to mobilise substantial funds.
“All options will be pursued simultaneously considering the cost-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 of the proposed Eurobond issuance would depend on prevailing international market conditions, assuring that the Ministry of Finance and the DMO would seek favourable borrowing terms.
The planned external loans are expected to finance projects and programmes across defence and security, transportation, agriculture, power, education and healthcare.
Tinubu also argued that the inflow of external borrowing proceeds would strengthen Nigeria’s foreign reserves and support the naira, noting that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
In the resolutions presented to lawmakers, the President sought approval 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 requested authorisation 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 arrangements.
Clarifying the request, Abbas said the President was not seeking approval for a fresh borrowing plan, as the N10.79 trillion external financing component had already been captured in the 2026 Appropriation Act.
Rather, he explained, the request was for legislative approval of the terms and conditions required before the government could access the loans.
The Speaker cited Section 21(1) of the DMO Act, which requires National Assembly approval of external borrowing terms through a resolution, and Section 27(1), which provides for approval of standard terms governing the negotiation and acceptance of external loans.
Abbas further distinguished the request from a separate presidential proposal for additional borrowing, stressing that both would be considered independently.
“For the avoidance of doubt, this request is distinct from the President’s more borrowing request. It neither supersedes nor withdraws that request, which remains subject to consideration on its own merit,” he said.
Nigeria’s 2026 budget provides for a fiscal deficit of N31.55 trillion, with N29.22 trillion in new borrowing identified as a major financing source.
The latest request therefore represents a statutory step towards accessing the $7.71 billion external borrowing provision already approved in the budget, rather than an additional borrowing commitment.
Editorial note: The figures in the supplied report require reconciliation: N18.28 trillion plus N10.79 trillion equals N29.07 trillion, not N29.22 trillion. The N150 billion difference should be checked against the President’s letter or the approved budget before publication.
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