President Bola Tinubu has requested the Senate's approval for an additional $20.52bn and €1.05bn in external borrowing to fund infrastructure and development projects under the Federal Government's 2026–2027 Supplementary External Borrowing Plan. The request was conveyed to the National Assembly in a letter read by Senate President Godswill Akpabio during plenary on Tuesday. Tinubu urged lawmakers to consider and approve the proposal promptly.
The proposed borrowing comprises $20,517,755,901 and €1,045,083,643. According to the President, the additional external financing is required to address the country's infrastructure deficit and bridge funding gaps affecting the implementation of critical development programmes. The funds would be deployed to projects covering power, transportation, healthcare, agriculture, education, water supply, security, job creation, and financial management reforms.
Tinubu said the projects were selected after technical and economic assessments, with priority given to initiatives expected to deliver significant socioeconomic benefits. He added that the programmes were designed to generate employment, encourage skills acquisition and entrepreneurship, reduce poverty, and improve food security. These initiatives aim to improve the livelihood of the Nigerian child.
The proposed projects would be implemented across the 36 states and the Federal Capital Territory, highlighting the nationwide reach of the planned investments. Tinubu maintained that the scale of the country's infrastructure requirements made additional financing necessary, arguing that external loans would help bridge the funding shortfall.
In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue prudent external borrowings to close the financing shortfall. The President urged the National Assembly to expedite consideration of the request, saying timely approval would facilitate fund disbursement and speed up project execution.
However, the proposal is expected to face legislative scrutiny, particularly over its relationship with existing borrowing plans and previously approved financing arrangements. The Senate President announced that the borrowing plan had featured in earlier budgetary and external financing approvals, although he was uncertain about the exact period covered.
The request would be referred to the Senate Committee on Local and Foreign Debts for examination, with possible collaboration from the committees on Appropriations and Finance. The committee is expected to examine the details of the proposed borrowing, including its scope and links to earlier approvals, before the Senate determines the next steps.
Key points
- The proposed external loans would be used to fund projects covering power, transportation, healthcare, agriculture, education, water supply, security, job creation, and financial management reforms.
- The projects would be implemented across the 36 states and the Federal Capital Territory, highlighting the nationwide reach of the planned investments.
- The proposal is expected to face legislative scrutiny, particularly over its relationship with existing borrowing plans and previously approved financing arrangements.
