President Bola Tinubu has asked the House of Representatives to approve the implementation of the N10.79tn external borrowing component of the 2026 budget to help finance the Federal Government’s deficit.
The request, contained in a letter addressed to the Speaker of the House, Tajudeen Abbas, was presented during Wednesday’s plenary.
Tinubu is seeking authorisation to raise $7.71bn, calculated at the budget exchange rate of N1,400 to the dollar, through external financing arrangements.
The President explained that the proposed borrowing was already captured in the 2026 Appropriation Act and formed part of the N29.22tn approved borrowing plan to fund the budget deficit.
In the letter, he said, “I write to request the permission of the House of Representatives to implement the new external borrowing plan contained in the 2026 Appropriation Act in the sum of N10,790,366,835,481, which is equivalent to $7,707,404,882.49 at the budget exchange rate of $1 to N1,400, for the part financing of the budget deficit.”
The President noted that the overall borrowing plan comprised N18.28tn in domestic loans and N10.79tn in external financing.
He said the government intended to explore multiple funding sources simultaneously, depending on the cost implications and the time required to secure the loans.
Tinubu, however, indicated that the government would prioritise Eurobond issuance because of its relatively faster processing time.
“All options will be pursued simultaneously, considering the cost-benefit to the country as well as the time required to access the funds. In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude,” he stated.
He added that the final borrowing terms would depend on prevailing conditions in the international financial market, assuring that the Ministry of Finance and the Debt Management Office would work towards obtaining favourable conditions.
According to him, the funds would support projects and programmes captured in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.
The President also said the proceeds would help strengthen Nigeria’s external reserves and support the naira, explaining that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
Tinubu further sought legislative authorisation to obtain the loans through multilateral and bilateral institutions, commercial lenders, the International Monetary Fund, bridge financing arrangements and Eurobond issuance.
He also requested approval for the Minister of Finance and Coordinating Minister of the Economy, working with the DMO, to take the necessary steps to execute the borrowing plan.
However, Abbas clarified that the President was not seeking approval for an entirely new borrowing proposal, noting that the N10.79tn external component had already received legislative approval as part of the 2026 budget.
The Speaker explained that the latest request was intended to fulfil the statutory requirement for the National Assembly to approve the terms and conditions governing external loans before they could be accessed.
He said Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, required the government to obtain parliamentary approval for the relevant borrowing conditions.
Abbas also distinguished the request from another proposal by the President seeking additional borrowing, stressing that both matters would be treated separately.
“For the avoidance of doubt, this request is distinct from the President’s more borrowing request. It neither supersedes nor withdraws that request, which remains subject to consideration on its own merit,” the Speaker said.
The development comes amid concerns over the Federal Government’s increasing reliance on borrowing to finance budget shortfalls and the implications for Nigeria’s debt sustainability.
The 2026 budget provides for a fiscal deficit of N31.55tn, with fresh borrowing of N29.22tn identified as a major source of financing.
The President’s latest request, therefore, seeks to secure the legislative authorisation needed to access the external portion of the borrowing already provided for in the approved budget.
