President Bola Tinubu has requested the Senate to approve N10.79 trillion in external borrowing, equal to roughly $7.7 billion, to finance a part of the Federal Government’s 2026 budget deficit.
The request was contained in a letter addressed to Senate President Godswill Akpabio and browse throughout plenary, in accordance to the News Agency of Nigeria (NAN).
Tinubu stated the 2026 Appropriation Act supplied for N29.2 trillion in new borrowings to finance a budget deficit of about N31.4 trillion.
The borrowing plan includes N18.4 trillion in home borrowing and N10.79 trillion in external financing.
He defined that the federal government would elevate the external part by way of one or a mix of funding sources, together with concessional and business loans from multilateral and bilateral establishments, the International Monetary Fund, bridge financing services, direct borrowing from worldwide monetary establishments and Eurobond issuance.
The president stated the federal government would assess the obtainable choices primarily based on their respective prices, advantages and entry timelines, with higher emphasis on Eurobond issuance due to its comparatively quicker execution and capability to elevate bigger quantities at aggressive prices.
External borrowing to fund precedence initiatives
Tinubu stated the proposed funds would finance precedence initiatives throughout defence and safety, transportation, agriculture, energy, training and healthcare.
He famous that the ultimate borrowing phrases, together with rates of interest and compensation tenures, would depend upon prevailing market situations when the funds are priced.
The Federal Ministry of Finance and the Debt Management Office would work to safe essentially the most beneficial phrases for the nation, he added.
Tinubu additionally requested approval for the borrowing to be raised on the 2026 budget change price of N1,409 to the greenback, with the proceeds to be acquired by the Central Bank of Nigeria on behalf of the Federal Government.
He stated the funds would additionally help the nation’s external reserves.
Senate refers request to debt committee
Senate President Godswill Akpabio stated the newest correspondence outmoded an earlier request for $20.3 billion, describing the brand new letter as extra express in regards to the authorities’s borrowing necessities.
He stated the federal government would discover completely different funding sources to safe beneficial borrowing phrases by way of a willing-seller, willing-buyer association.
Akpabio subsequently referred the request to the Senate Committee on Local and Foreign Debt for additional consideration and directed it to report again as quickly as practicable.
Nigeria’s public debt continues to rise
The newest borrowing request comes amid a rise in Nigeria’s public debt inventory.
External and home debt have each grown since then. Nigeria’s external debt rose from $42.49 billion in December 2023 to $51.86 billion by December 2025, whereas home debt elevated from N59.1 trillion to N89.4 trillion over the identical interval.
Last month, Tinubu sought Senate approval for a supplementary external borrowing plan of $20.52 billion and €1.05 billion for 2026–2027 to finance vital infrastructure and growth initiatives throughout the nation.
