President Bola Tinubu has asked the House of Representatives to approve the implementation of the Federal Government’s N10.79tn ($7.71bn) external borrowing plan under the 2026 Appropriation Act.
The request was contained in a letter addressed to the Speaker of the House, Tajudeen Abbas, and read during Wednesday’s plenary.
Tinubu said the proposed borrowing, calculated at the budget exchange rate of N1,400 to the dollar, would help finance part of the Federal Government’s budget deficit.
The President explained that the request was in line with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which require the terms and conditions of external loans to be presented to and approved by the National Assembly.
He noted that the N10.79tn external borrowing was already included in the 2026 Appropriation Act as part of the N29.22tn approved new borrowing.
The total borrowing plan comprises N18.28tn in domestic loans and N10.79tn in external financing.
In the letter, Tinubu requested authorisation to raise $7.71bn through multilateral and bilateral institutions, conventional and commercial lending windows, the International Monetary Fund, bridge financing facilities and Eurobond issuance.
He said the government would explore different borrowing options simultaneously, taking into account their costs, benefits and the time required to access the funds.
However, he indicated that priority would be given to Eurobond issuance, describing it as a relatively faster option for raising substantial funds.
The President added that the final terms of the Eurobond issuance would depend on prevailing international market conditions, assuring that the Ministry of Finance and the DMO would work to secure favourable borrowing terms.
Tinubu said the proceeds would support projects and programmes captured in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.
He also maintained that the external borrowing would help strengthen Nigeria’s foreign reserves and support the naira, as the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
The President further sought approval for the Minister of Finance and Coordinating Minister of the Economy, working with the DMO, to take the necessary steps to implement the borrowing arrangement.
Responding to the request, Abbas clarified that Tinubu was not seeking approval for a fresh borrowing plan, as the N10.79tn external component had already been approved by the National Assembly through the 2026 Appropriation Act.
According to the Speaker, the request was specifically aimed at obtaining the statutory legislative authorisation required to implement the external borrowing and approve its terms and conditions.
Abbas explained that Section 21(1) of the DMO Act requires the National Assembly to approve the terms and conditions of external loans through a resolution, while Section 27(1) provides for parliamentary approval of standard conditions governing the negotiation and acceptance of such loans.
He also stressed that the request was separate from the President’s additional borrowing proposal, which remains subject to independent consideration by lawmakers.
“For the avoidance of doubt, this request is distinct from the President’s more borrowing request. It neither supersedes nor withdraws that request, which remains subject to consideration on its own merit,” Abbas said.
The clarification comes amid growing concerns over Nigeria’s rising public debt and the Federal Government’s increasing reliance on borrowing to finance budget deficits.
The 2026 budget provides for a deficit of N31.55tn, with N29.22tn expected to come from new borrowing.
Tinubu’s latest request, therefore, does not introduce additional borrowing into the 2026 budget but seeks the legislative approval necessary for the government to access the external financing component already provided for in the appropriation law.
