President Bola Tinubu has asked the Senate to approve $7.707 billion in external borrowings to finance part of the 2026 budget deficit.
The request, equivalent to approximately N10.79 trillion at the budget exchange rate of N1,400 to a dollar, was conveyed in a letter read during plenary Wednesday by Senate President Godswill Akpabio.
Tinubu said the funds would be raised primarily through Eurobond issuance, alongside loans from multilateral and bilateral institutions, international financial institutions and syndicated loan arrangements.
He said the borrowing would help finance the budget, strengthen external reserves and support stability of the naira.
The letter, dated October 26, 2026, sought the National Assembly’s resolution to implement the external borrowing provision in the 2026 Appropriation Act.
Tinubu said the request complies with Sections 21(1) and 27(1) of the Debt Management Office Act, 2003, which require external loan terms to be approved by the National Assembly.
He recalled that the 2026 Appropriation Act provided for total new borrowings of about N29.2 trillion, comprising N18.4 trillion domestic and N10.79 trillion external, to finance the deficit.
According to him, government plans to raise the external component through concessional and commercial facilities from multilateral and bilateral institutions, IMF, bridge financing, loan syndications and Eurobonds.
He said emphasis would be on Eurobonds because of shorter time to conclude and potential to raise substantial funds at lower costs, with final rates determined by market conditions at pricing.
Tinubu said proceeds would fund critical projects in defence and security, transportation, agriculture, power, education and health, and help consolidate macroeconomic reforms.
He added that funds received by the Central Bank on behalf of Federal Government would boost external reserves and support naira stability.
In the proposed resolution, he asked the Senate to authorise the N10.79 trillion external borrowing and empower the Minister of Finance and Coordinating Minister of the Economy, with the DMO, to take necessary steps to give effect to it.
Following presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts for further legislative consideration and to report back as soon as practicable.