President Bola Tinubu has written to the House of Representatives seeking approval to implement the ₦10.79tn external borrowing component of the 2026 Appropriation Act.
The funds would finance part of the Federal Government’s budget deficit.
In a letter addressed to the Speaker of the House, Tajudeen Abbas, and read during Wednesday’s plenary, the President requested approval for the government to raise $7.71bn at the budget exchange rate of ₦1,400 to a dollar.
Tinubu explained that the request complied with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003. The provisions require the terms and conditions of external loans to be laid before, and approved by, the National Assembly.
He said the proposed borrowing was already captured in the 2026 Appropriation Act and formed part of the ₦29.22tn in approved new borrowing to finance the budget deficit.
According to the President, the approved borrowing comprises ₦18.28tn in domestic loans and ₦10.79tn in external borrowing.
“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 ₦10,790,366,835,481, which is equivalent to $7,707,404,882.49 at the budget exchange rate of $1 to ₦1,400, for the part financing of the budget deficit,” he stated.
Tinubu said the government would pursue different borrowing options at the same time, taking into account the cost of borrowing and the time needed to access the funds.
He indicated, however, that greater emphasis would be placed on Eurobond issuance, which he described as a faster way of raising substantial funds at relatively lower cost.
“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,” the president said.
He added that the final terms and conditions of the Eurobond issuance would depend on prevailing market conditions at the time of pricing.
Tinubu assured the House that the Federal Ministry of Finance and the DMO would work to secure the most favourable borrowing terms available in the international market.
The President further explained that the external loans would finance projects and programmes in the 2026 budget. He named critical sectors including defence and security, transportation, agriculture, power, education and health.
He also argued that the proceeds would help strengthen the country’s external reserves and support the naira. He noted that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
In the resolution sought from the House, Tinubu requested authorisation to raise the funds through multilateral and bilateral institutions, conventional and commercial lending windows, the International Monetary Fund, bridge financing facilities and Eurobond issuance.
He also sought authorisation for the Minister of Finance and Coordinating Minister of the Economy, working with the DMO, to take all necessary steps to implement the proposed borrowing arrangement.
Responding, Abbas clarified that the President was not seeking approval for a fresh borrowing plan. He stressed that the ₦10.79tn external borrowing had already been approved by the National Assembly and provided for in the 2026 Appropriation Act.
Abbas explained that the request was meant to fulfil the statutory requirement for parliamentary approval of the terms and conditions governing external loans before the government could proceed.
He said Section 21(1) of the DMO Act requires the National Assembly to be presented with the terms and conditions of external borrowing for approval by resolution. Section 27(1), he added, provides for parliamentary approval of standard terms and conditions for negotiating and accepting external loans.
The Speaker also distinguished the request from the President’s separate proposal for additional borrowing, noting that the two matters were independent and would be considered on their individual merits.
“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,” Abbas said.
He added that the current request concerned only the statutory authorisation required to implement external borrowing already provided for in the 2026 Appropriation Act.
The clarification is significant amid concerns over the Federal Government’s growing reliance on borrowing to finance budget deficits, and what that means for debt sustainability and public finances.
Nigeria’s 2026 budget provides for a deficit of ₦31.55tn, with new borrowing of ₦29.22tn identified as a major financing component.
The latest request therefore does not introduce a new borrowing figure into the 2026 budget. It seeks the legislative resolution needed to access the external component of the borrowing already approved.
