President Bola Ahmed Tinubu has formally requested the Senate’s approval for a $7.7 billion external loan facility, equivalent to approximately ₦10.79 trillion, to part-finance the 2026 national budget.
The request, detailed in a letter to the Senate, represents the foreign borrowing component of the 2026 Appropriation Act. The Act allocates ₦29.2 trillion in new borrowings to bridge a ₦31.4 trillion national budget deficit, with the remaining balance expected to be sourced from domestic debt markets.
According to the letter, the Federal Government will explore multiple international financing windows simultaneously. It places a strategic emphasis on Eurobond issuances due to their swift execution timelines and large capital capacities, alongside concessional facilities, bilateral loans, and syndicated arrangements.
President Tinubu stated that the loan proceeds will be channeled toward critical infrastructure and developmental programs in defense, transportation, agriculture, power, education, and healthcare. He added that because the funds will be received directly by the Central Bank of Nigeria CBN, the capital injection is expected to boost the country’s external reserves and stabilize the Naira exchange rate.
The Senate President disclosed that this $7.7 billion request supersedes a larger $20.52 billion and €1.045 billion external rolling plan previously submitted by the executive. Following the presentation, the request was referred to the Senate Committee on Local and Foreign Debts for immediate legislative scrutiny.
