The Senate has begun reviewing President Bola Tinubu’s request for approval to secure a $7.7bn (N10.79tn) external loan to partly finance the 2026 national budget.
The request was presented during Wednesday’s plenary by Senate President Godswill Akpabio, who referred it to the Committees on Local and Foreign Debts and Appropriations for further consideration.
In a letter dated October 26, 2026, Tinubu sought approval to raise $7.707bn, equivalent to N10.79tn at the budget exchange rate of N1,400 to the dollar.
The proposed borrowing represents the external component of the N29.2tn borrowing provision in the 2026 Appropriation Act, which comprises N18.4tn in domestic loans and N10.79tn in external financing.
The President said the funds would support projects in defence and security, transportation, agriculture, power, education, and healthcare.
He also said the government would explore different financing options, including loans from multilateral and bilateral institutions, the International Monetary Fund and Eurobond issuance, with preference for Eurobonds because of their relatively faster processing and potential to raise substantial funds.
Tinubu added that the final interest rates and repayment periods would depend on prevailing market conditions, assuring lawmakers that the Ministry of Finance and the Debt Management Office would negotiate favorable terms.
He also argued that the foreign currency proceeds would boost Nigeria’s external reserves and help support the naira.
The latest request replaces an earlier proposal seeking approval for $20.52bn and €1.045bn in external borrowing under the 2026–2027 Supplementary External Borrowing Plan.
Akpabio urged the Federal Government to secure favorable loan conditions and ensure that the borrowing would be beneficial to the country.
The Senate committees are expected to examine the proposal and report back before the chamber takes a final decision.
