The Senate has begun considering President Bola Tinubu’s request to secure a $7.7bn (N10.79tn) external loan to finance part of the Federal Government’s 2026 budget deficit.
The request, contained in a letter dated October 26, 2026, was presented during Wednesday’s plenary and referred to the Senate Committee on Local and Foreign Debts for detailed consideration. Senate President Godswill Akpabio directed the committee to examine the proposal and submit its report as soon as practicable.
The proposed borrowing is part of the N29.2tn new borrowing approved in the 2026 Appropriation Act, comprising N18.4tn in domestic loans and N10.79tn in external financing. The funds are expected to help address the country’s projected N31.4tn budget deficit.
Tinubu explained that the Federal Government would explore different financing options, including Eurobonds, concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities and loan syndications.
However, the President said greater emphasis would be placed on Eurobond issuance because of its relatively faster processing time and capacity to raise substantial funds at competitive costs.
He listed defence and security, transportation, agriculture, power, education and healthcare as priority sectors expected to benefit from the proposed borrowing.
The President also argued that the foreign currency proceeds would boost Nigeria’s external reserves, provide additional support for the naira and strengthen the country’s external position.
Reacting to the request, Akpabio urged the Federal Government to negotiate favourable borrowing conditions, warning against accepting loan agreements without properly examining their economic implications and repayment obligations.
The Senate committee is expected to scrutinise the proposed financing arrangements and loan conditions before the upper chamber takes a final decision.
The request comes amid growing concerns over Nigeria’s rising public debt, debt-servicing obligations and continued reliance on borrowing to finance budget deficits.
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