President Bola Tinubu has submitted a request to the Senate for approval of the Federal Government's 2026-2027 Supplementary External Borrowing Plan. The plan involves $20.52bn and €1.05bn in external loans to finance infrastructure and development projects across the country. The request was transmitted to the National Assembly and read by Senate President Godswill Akpabio during Tuesday's plenary.
The proposed borrowing amounts to $20,517,755,901 and €1,045,083,643. Tinubu urged lawmakers to give the borrowing plan early consideration and approval, stating that the funds would support critical projects and programmes in infrastructure, agriculture, healthcare, education, water supply, security, employment generation, and financial management reforms.
The President explained that the external financing is necessary to address Nigeria's infrastructure deficit and bridge the funding gap hampering the implementation of development projects. He emphasized that the projects and programmes included in the plan had been selected following technical and economic evaluations, with a focus on their expected contributions to the country's socioeconomic development.
The initiatives aim to create jobs, promote skills acquisition and entrepreneurship, reduce poverty, and strengthen food security. Tinubu stated that these initiatives would generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, ultimately improving the livelihood of Nigerian citizens.
Most of the projects would be implemented across the 36 states and the Federal Capital Territory, underscoring the nationwide scope of the proposed investments. Tinubu argued that the scale of Nigeria's infrastructure needs made additional financing necessary, while maintaining that external borrowing would help close the funding shortfall.
The funds would primarily be channelled into critical infrastructure, particularly in the power, transportation, and healthcare sectors. Tinubu urged the Senate leadership and the wider National Assembly to approve the plan promptly, arguing that timely approval would facilitate disbursements and accelerate project implementation.
The request will undergo scrutiny by the relevant Senate committees, particularly against the backdrop of the government's existing borrowing arrangements and the need to establish the precise scope of the proposed financing. The Senate President said the borrowing plan had featured in previous government borrowing and budgetary arrangements, and would be referred to the Senate Committee on Local and Foreign Debts for consideration.
Key points
- The proposed external loans aim to address Nigeria's infrastructure deficit and support critical projects and programmes.
- The projects and programmes included in the plan have been selected following technical and economic evaluations.
- The Senate's consideration will be a key step in determining whether the proposed external financing receives the necessary legislative approval.
