President Bola Tinubu has sought the approval of the House of Representatives to implement the Federal Government’s N10.79tn external borrowing plan contained in the 2026 Appropriation Act.
The request, contained in a letter read during Wednesday’s plenary by Speaker Tajudeen Abbas, seeks authorisation for the government to raise $7.71bn at the budget exchange rate of N1,400 to a dollar to finance part of the 2026 budget deficit.
Tinubu explained that the external borrowing was part of the N29.22tn approved new borrowing for the 2026 fiscal year, comprising N18.28tn in domestic loans and N10.79tn in external loans.
The President said the government would explore various funding options, including multilateral and bilateral institutions, commercial lending facilities and Eurobond issuance, noting that greater emphasis would be placed on Eurobonds because of their relatively faster processing.
He added that the funds would be used to finance projects and programmes in critical sectors, including defence and security, transportation, agriculture, power, education and healthcare. The proceeds are also expected to strengthen Nigeria’s external reserves and support the naira.
However, Speaker Abbas clarified that the request was not for fresh borrowing, explaining that the N10.79tn external borrowing had already been approved by the National Assembly and provided for in the 2026 Appropriation Act.
He said the President was seeking the statutory legislative approval of the terms and conditions of the external loans before implementation, in line with the Debt Management Office Establishment Act.
Abbas also stressed that the request was separate from another proposal by the President for additional borrowing, which would be considered independently by the lawmakers.
Nigeria’s 2026 budget provides for a deficit of N31.55tn, with N29.22tn in new borrowing identified as a major financing component.
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