President Bola Tinubu has asked the House of Representatives to approve the implementation of N10.79 trillion in external borrowing provided for in the 2026 Appropriation Act to finance part of the Federal Government’s budget deficit.
The request, conveyed in a letter to the House, seeks legislative authorisation for the government to raise $7.707 billion through external financing arrangements.
The proposed borrowing represents the external component of the N29.2 trillion new borrowing approved in the 2026 budget, which also provides for N18.4 trillion in domestic borrowing to finance a projected budget deficit of about N31.4 trillion.
In the letter, Tinubu explained that the proposed external financing was necessary to fund projects and programmes captured in the 2026 Appropriation Act and consolidate the economic reforms introduced by his administration.
He said the government intended to explore different funding sources simultaneously, taking into account the costs, benefits and time required to access the funds.
The President identified Eurobond issuance as a major financing option, citing its relatively faster processing time and potential to raise substantial funds at competitive costs.
“In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude.
“Additionally, a large amount can be raised through Eurobonds at a relatively lower cost,” he said.
Other financing options identified by the President include concessional and commercial facilities from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing arrangements and loan syndications.
Tinubu, however, acknowledged that the final interest rates, repayment periods and other borrowing conditions would depend on prevailing conditions in the international financial market when the facilities are priced.
He assured the lawmakers that the Federal Ministry of Finance and the Debt Management Office would work together to secure the most favourable terms for the country.
The President said the proposed loans would support critical sectors, including defence and security, transportation, agriculture, power, education and healthcare.
According to him, the funds would help implement projects designed to strengthen the country’s macroeconomic position and sustain the gains recorded under his administration.
Tinubu also argued that the foreign currency proceeds would contribute to Nigeria’s external reserves, as the Central Bank of Nigeria would receive the funds on behalf of the Federal Government.
He said the additional reserves would provide further support for the stability of the naira.
The President’s request is anchored on Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which provide for legislative approval of external borrowing and empower the National Assembly to approve the terms and conditions of such facilities.
The latest communication follows a similar request presented to the Senate by the President last week seeking approval for the same N10.79 trillion external borrowing.
Senate President Godswill Akpabio had, while presenting the request, explained that the revised borrowing proposal superseded an earlier request for $20.52 billion and €1.045 billion under the 2026–2027 Supplementary External Borrowing Plan.
Tinubu had explained that the revised proposal provided greater flexibility for the government to explore different financing sources rather than depend on a single borrowing arrangement.
The request comes amid concerns over Nigeria’s rising debt obligations and the government’s continued reliance on borrowing to finance budget deficits, despite the removal of the petrol subsidy and the administration’s claims of improved revenue generation.
The Federal Government has maintained that additional borrowing is necessary to bridge the country’s infrastructure deficit and finance projects expected to stimulate economic growth.
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