President Tinubu Seeks Reps’ Approval For N10.79tn External Borrowing

President Bola Tinubu has asked the House of Representatives to approve the implementation of the N10.79tn external borrowing component of the 2026 Appropriation Act to help finance the Federal Government’s budget deficit.

The request, contained in a letter addressed to the Speaker of the House, Tajudeen Abbas, was read during Wednesday’s plenary.

In the letter, Tinubu sought approval to raise $7.71bn, equivalent to N10.79tn at the budget exchange rate of N1,400 to the dollar.

The President said the request was in line with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which require the terms and conditions of external loans to be presented to and approved by the National Assembly.

He explained that the proposed borrowing was already captured in the 2026 Appropriation Act as part of the N29.22tn approved new borrowing to finance the Federal Government’s budget deficit.

According to him, the borrowing plan comprises N18.28tn in domestic loans and N10.79tn in external financing.

Tinubu stated that the government intended to explore different funding options simultaneously, taking into consideration borrowing costs and the time required to access the funds.

He, however, said greater emphasis would be placed on Eurobond issuance because of its relatively faster processing time and ability to raise substantial funds.

The President added that the final terms of the Eurobond issuance would depend on prevailing international market conditions.

He assured lawmakers that the Ministry of Finance and the Debt Management Office would work towards securing the most favourable borrowing terms for the country.

Tinubu said the external loans would finance projects and programmes contained in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.

He also noted that the proceeds would help strengthen Nigeria’s external reserves and support the naira, adding that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.

The President further requested authorisation to source the funds through multilateral and bilateral institutions, commercial lending windows, the International Monetary Fund, bridge financing facilities and Eurobond issuance.

He also sought approval for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the DMO, to take necessary steps to implement the borrowing arrangement.

Responding to the request, Abbas clarified that the President was not seeking approval for fresh borrowing, stressing that the N10.79tn external borrowing had already been approved by the National Assembly and provided for in the 2026 budget.

He explained that the request was aimed at fulfilling the statutory requirement for parliamentary approval of the terms and conditions governing external loans before implementation.

According to the Speaker, Section 21(1) of the DMO Act requires the National Assembly to approve the terms and conditions of external borrowing through a resolution, while Section 27(1) provides for legislative approval of standard conditions for negotiating and accepting external loans.

Abbas also distinguished the request from the President’s separate proposal for additional borrowing, noting that both matters would be considered independently.

He stressed that the current request concerned only the statutory authorisation required to access the external borrowing already provided for in the 2026 Appropriation Act.

Nigeria’s 2026 budget provides for a deficit of N31.55tn, with N29.22tn in new borrowing identified as a major financing source.

The latest request comes amid growing concerns over the Federal Government’s reliance on borrowing to finance budget deficits and the implications for the country’s debt sustainability and public finances.