The Senate has received a request from President Bola Tinubu seeking approval to raise N10.79 trillion, equivalent to approximately 7.7 billion dollars, through external borrowing to finance part of the 2026 budget deficit.
Senate President Godswill Akpabio read the request during plenary, saying it was made under Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003. The president’s letter recalled that the 2026 Appropriation Act provided for N29.2 trillion in new borrowings to help finance a deficit of about N31.4 trillion, comprising N18.4 trillion in domestic borrowing and N10.79 trillion externally.
Tinubu said the Federal Government intended to raise the funds through one or a combination of sources, including concessional and commercial loans from multilateral and bilateral institutions, the International Monetary Fund, bridge financing, direct borrowing from international financial institutions and Eurobond issuance. He said the options would be assessed based on their costs, benefits and the time required to access them, with greater emphasis on Eurobonds because of their speed and potential to raise larger sums at competitive costs.
The president said the final borrowing terms, including interest rates and repayment tenures, would depend on market conditions at the time of pricing. He added that the Ministry of Finance and the Debt Management Office would work to secure favourable terms, while the funds would support priority projects in defence and security, transportation, agriculture, power, education and health. The proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government and would also support external reserves.
Tinubu asked the National Assembly to authorise the borrowing at the budget exchange rate of N1,409 to one dollar and empower the Finance Minister, working with the Debt Management Office, to implement the resolution.
Akpabio said the request superseded an earlier application for 20.3 billion dollars, describing the latest correspondence as more explicit. The Senate President referred the request to the Committee on Local and Foreign Debt for consideration and a report as soon as practicable.
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