Tinubu Asks Reps to Approve $7.7 Billion Foreign Loans

President Bola Tinubu has approached the House of Representatives for approval to raise $7.707 billion in external financing to support the implementation of the 2026 national budget.

In a letter addressed to Speaker Tajudeen Abbas, the President asked lawmakers to authorise the National Government to access the funds through various international financing arrangements, including Eurobond issuance.

The proposed borrowing, valued at approximately N10.79 trillion using the budget exchange rate of N1,400 to the dollar, forms part of the N29.218 trillion borrowing provision contained in the 2026 Appropriation Act.

Tinubu explained that the request was not for a new borrowing allocation, as the National Assembly had already approved the amount in the budget. Rather, he said, the latest request was necessary to obtain legislative approval for the terms and conditions governing the external loans.

He relied on Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which require parliamentary approval of the terms and conditions for external borrowing.

The President said the government intended to pursue different funding options based on their cost, availability and the time required to secure the financing.

However, he indicated a preference for Eurobond issuance, citing its potential to provide larger amounts of funding within a shorter period and at relatively lower costs.

He noted that the final terms of any Eurobond transaction would depend on prevailing international market conditions at the time of pricing.

The proposed financing will be directed towards projects and programmes already captured in the 2026 budget, including defence and security, transportation, agriculture, electricity, education and healthcare.

Tinubu also said the funds would support the government’s macroeconomic reform programme and contribute to the country’s external reserves.

According to the letter, the proceeds would be received by the Central Bank of Nigeria on behalf of the government, which the President said could provide support for the naira exchange rate.

The financing options listed in the request include loans from multilateral and bilateral institutions, commercial financing facilities, the International Monetary Fund, bridge financing and direct borrowing from international institutions.

The President also asked the House to authorise the Minister of Finance and Coordinating Minister of the Economy, working with the Debt Management Office, to undertake the necessary steps to implement the borrowing arrangement if approved.

Meanwhile, Tinubu clarified that the request should be considered separately from another additional borrowing proposal currently before the National Assembly.

He said the latest submission neither withdraws nor replaces the earlier request, but specifically seeks legislative authorisation to implement the external borrowing component already provided for in the 2026 Appropriation Act.

Under the approved borrowing plan, the government is expected to raise N18.28 trillion domestically and N10.79 trillion from external sources to finance the 2026 budget deficit.