President Bola Tinubu has submitted a request to the Senate for approval of a fresh $7.7 billion external borrowing plan. This amount is equivalent to approximately ₦10.79 trillion and aims to finance the 2026 national budget deficit. The request was conveyed in a letter read by Senate President Godswill Akpabio during a plenary session on November 4, 2026.
The proposed loan will fund projects across critical sectors, including security, transportation, agriculture, power, education, and healthcare. Additionally, the borrowing is expected to help strengthen Nigeria’s external reserves and support the stability of the naira. The President outlined that the funds will be sourced mainly through Eurobond issuance and financing from multilateral and bilateral institutions.
According to the President, the proposed $7.7 billion will be sourced from various channels, including international financial institutions and syndicated loan arrangements. The funding is expected to support government projects and address the financing gap in the 2026 national budget. This move is part of the government's efforts to secure necessary funds for budget implementation.
Senate President Godswill Akpabio noted that the new proposal appears to replace an earlier borrowing request of $20.52 billion and €1.045 billion submitted to the National Assembly the previous week. He subsequently referred the fresh request to the Senate Committee on Local and Foreign Debts for consideration and further legislative action.
The Senate Committee on Local and Foreign Debts will examine the proposal before reporting back to the Senate. The committee's review is a crucial step in the legislative process, ensuring that the borrowing plan aligns with the country's financial needs and capabilities. The Senate has not yet approved the $7.7 billion borrowing request.
The 2026 national budget deficit is a significant concern for the Tinubu administration, and securing external financing is crucial to address it. The government's ability to obtain the loan will depend on the Senate's approval and the terms agreed upon with international lenders. The loan will have implications for Nigeria's debt profile and economic stability.
Opposition to the borrowing plan has already been voiced, with Atiku expressing concerns that the Senate should scrutinize the loan request thoroughly. The debate surrounding the borrowing plan is expected to continue as the Senate Committee on Local and Foreign Debts reviews the proposal and makes recommendations.
Key points
- President Tinubu seeks $7.7 billion external loan to finance 2026 budget deficit.
- Loan to fund projects in security, transportation, agriculture, power, education, and healthcare.
- Senate refers borrowing request to Committee on Local and Foreign Debts for review.
