President Bola Tinubu has asked the House of Representatives to approve the implementation of the Federal Government’s ₦10.79 trillion external borrowing plan contained in the 2026 Appropriation Act.
The request, presented in a letter read by Speaker Tajudeen Abbas during Wednesday’s plenary, seeks authorisation to raise 7.71 billion dollars at the budget exchange rate of ₦1,400 to a dollar to finance part of the Federal Government’s budget deficit.
Tinubu explained that the proposed external borrowing forms part of the ₦29.22 trillion approved new borrowing for the 2026 budget, comprising ₦18.28 trillion in domestic loans and ₦10.79 trillion in external borrowing.
The President said the government would explore different financing options, including multilateral and bilateral loans, commercial lending and Eurobond issuance, with greater emphasis on Eurobonds because of their relatively faster processing and lower borrowing costs.
He added that the funds would support projects in critical sectors, including defence, transportation, agriculture, power, education and healthcare, while also helping to strengthen Nigeria’s external reserves and support the naira.
However, Speaker Abbas clarified that the President was not seeking approval for fresh borrowing, noting that the ₦10.79 trillion had already been captured in the 2026 budget.
He said the request was to fulfil the statutory requirement for legislative approval of the terms and conditions of external loans before implementation.
The Speaker also stressed that the request was separate from another borrowing proposal by the President, which would be considered independently.
