Economy
Tinubu Seeks Senate Approval for $7.7bn External Borrowing for 2026 Budget
By Adedapo Adesanya
President Bola Tinubu has asked the Senate to approve fresh external borrowing of $7.7 billion to finance the 2026 budget.
The request, equivalent to approximately N10.79 trillion at the budget exchange rate of N1,400 to the Dollar, was conveyed in a letter read during Wednesday’s plenary by the Senate President, Mr Godswill Akpabio.
In the letter, President Tinubu said the proposed funds would be raised primarily through Eurobond issuance, alongside loans from multilateral and bilateral institutions, international financial institutions and syndicated loan arrangements.
The President said the borrowing would support budget implementation, strengthen Nigeria’s external reserves and promote stability in the Naira.
He also sought authorisation for the Minister of Finance, Mr Taiwo Oyedele, and the Debt Management Office (DMO) to take the necessary steps to execute the borrowing plan.
Reacting to the request, Mr Akpabio said the latest submission appeared to supersede an earlier borrowing proposal while providing greater clarity on the sources of financing.
The Senate President subsequently referred the request to the Senate Committee on Local and Foreign Debts for consideration and a report as soon as practicable.
The committee’s review is expected to precede further legislative action on the proposed borrowing.
Last week, the Nigerian President also wrote to the Senate seeking approval of a supplementary external borrowing plan of $20.52 billion and €1.045 billion to finance infrastructure and development projects across the country.
“The 2026–2027 Supplementary External Borrowing Plan cuts across all sectors, with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security and employment generation, as well as financial management reforms, amongst others,” he said in his request.
According to the letter, the proposed facilities cost $20,517,755,901 and €1,045,083,643.
