President Bola Tinubu has written to the House of Representatives, seeking approval to access N10.79 trillion in external loans provided for in the 2026 Appropriation Act to finance part of the Federal Government’s budget deficit.
The request, presented to the House during Wednesday’s plenary, seeks authorisation to raise 7.71 billion dollars at the budget exchange rate of N1,400 per dollar.
Tinubu explained that the proposed borrowing formed part of the N29.22 trillion approved new borrowing for the 2026 budget, comprising N18.28 trillion in domestic loans and N10.79 trillion in external borrowing.
The President said the funds would be sourced through multilateral and bilateral institutions, commercial lenders, the International Monetary Fund, bridge financing facilities and Eurobond issuance. He noted that greater emphasis would be placed on Eurobonds because of their relatively faster processing and access to substantial funds.
According to him, the proposed loans would finance projects and programmes in critical sectors, including defence and security, transportation, agriculture, power, education and healthcare.
He added that the funds would also help strengthen Nigeria’s external reserves and support the naira, with the Central Bank of Nigeria receiving the proceeds on behalf of the Federal Government.
Responding to the request, Speaker of the House of Representatives, Tajudeen Abbas, clarified that the President was not seeking approval for fresh borrowing, as the N10.79 trillion had already been captured in the 2026 budget approved by the National Assembly.
Abbas explained that the request was to obtain the statutory parliamentary authorisation for the terms and conditions of the external loans, as required under Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003.
He also stressed that the request was separate from the President’s additional borrowing proposal, which would be considered independently.
Nigeria’s 2026 budget provides for a deficit of N31.55 trillion, with new borrowing of N29.22 trillion identified as a major source of financing.
Post comments (0)