President Bola Tinubu has approached the National Assembly for approval to secure a fresh external loan of approximately $7.7 billion, equivalent to about ₦10.79 trillion, to help finance Nigeria’s 2026 budget.

The request was presented to the Senate in a letter dated October 26, which Senate President Godswill Akpabio read during Wednesday’s plenary session.

The proposed borrowing is intended to cover part of the Federal Government’s estimated ₦31.4 trillion budget deficit. It also represents the external borrowing component of the ₦29.2 trillion financing provision approved in the 2026 Appropriation Act.

According to the President, the government plans to explore different financing options, including Eurobond issuance and loans from multilateral and bilateral institutions.

However, the administration indicated that it would give greater consideration to Eurobonds because they could provide access to substantial funding within a shorter period and potentially on more favourable terms.

The proposed funds are expected to support projects in critical sectors, including defence, transportation, agriculture, electricity, healthcare and education.

Tinubu also explained that the foreign currency proceeds could strengthen Nigeria’s external reserves and provide additional support for the naira.

Following the presentation, the Senate referred the request to its Committee on Local and Foreign Debts for further examination.

The development comes amid continuing public concerns about Nigeria’s borrowing levels, debt-servicing obligations and the country’s ability to generate sufficient revenue to finance its development programmes.

Source: Premium Times and Punch Newspapers.