Tinubu seeks $7.7 bn external loan for Nigeria deficit

President Bola Tinubu asked Nigeria’s Senate to approve $7.7 billion in external borrowing in an Oct. 26 letter read at plenary on Nov. 4, Leadership reported via AllAfrica.

The request is aimed at Nigeria’s 2026 deficit, estimated at N31.4 trillion, and supersedes, according to Senate President Godswill Akpabio, an earlier $20.3 billion proposal.

Tinubu asked lawmakers to authorise the federal government to raise N10,790,366,835,481, using the budget exchange rate of N1,409 to $1, the letter said.

“I believe this letter effectively supersedes the earlier request for 20.3 billion US dollars because the present request is more explicit,” Akpabio said after reading the correspondence.

Akpabio said the government was not seeking to borrow the full amount from a single lender. “The government will have to explore the available options and secure the best possible terms under a willing-seller, willing-buyer arrangement,” he said.

The request places debt approval back before lawmakers as Africa’s largest oil producer seeks financing for a spending plan already built around heavy borrowing. Tinubu’s letter said the 2026 Appropriation Act approved N29.2 trillion in new borrowing to cover most of the projected N31.4 trillion deficit.

The borrowing plan cited in the letter comprises N18.4 trillion in domestic borrowing and N10.79 trillion in external borrowing. The external component is the subject of the latest Senate request.

Tinubu said the money could come through concessional or commercial loans from multilateral and bilateral institutions, the International Monetary Fund, bridge facilities, direct borrowing from international financial institutions or Eurobond issuance. Eurobonds are foreign-currency bonds sold to international investors.

The president said the government would examine available channels at the same time, weighing cost, benefit and timing. “In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude,” Tinubu said in the letter.

Final borrowing costs, repayment periods and other terms have not been fixed. Tinubu said those conditions would depend on market pricing when the debt is raised, and that the Federal Ministry of Finance and the Debt Management Office would work to obtain favourable terms.

The letter said the proceeds would support programmes and projects in the 2026 budget, including defence and security, transportation, agriculture, power, education and health. Tinubu also said funds received through the Central Bank of Nigeria on behalf of the federal government would add to external reserves and support the naira exchange rate.

The president cited Sections 21(1) and 27(1) of the Debt Management Office Act, 2003, which he said require external borrowing arrangements to be submitted to the National Assembly for approval by resolution.

Tinubu also sought authority for the finance minister, working with the Debt Management Office, to take the steps needed to implement the borrowing plan if approved.

Akpabio sent the request to the Senate Committee on Local and Foreign Debt for review and directed it to report back as soon as practicable. The Senate is expected to consider the committee’s report before taking further action.

Source: news report, AllAfrica/Leadership, Nov. 5, 2026