Tinubu Seeks Reps’ Approval to Access N10.79trn Foreign Loans in 2026 Budget

President Bola Tinubu has asked the House of Representatives to approve the terms and conditions for accessing N10.79 trillion in external loans provided for in the 2026 Appropriation Act.

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

In the letter, Tinubu sought legislative authorisation for the Federal Government to raise $7.71 billion, equivalent to N10.79 trillion at the budget exchange rate of N1,400 to the dollar, to finance part of the country’s budget deficit.

The President explained that the request was in accordance with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which require the Federal Government to present the terms and conditions of external borrowing to the National Assembly for approval.

The total borrowing plan comprises N18.28 trillion in domestic loans and N10.79 trillion in external financing.

According to the President, the Federal Government intends to explore various sources of external financing, including multilateral and bilateral institutions, commercial lenders, the International Monetary Fund (IMF) and the issuance of Eurobonds.

However, he disclosed that greater emphasis would be placed on Eurobond issuance because the process could be completed faster than some other borrowing options.

Tinubu explained that the funds would be used to finance critical government projects and programmes across several sectors, including defence and security, transportation, agriculture, power, education and healthcare.

He also stated that the foreign loans would help strengthen Nigeria’s external reserves and provide support for the naira.

The President explained that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby contributing to the country’s foreign exchange reserves.

Reacting to the request, Speaker Tajudeen Abbas clarified that the President was not seeking approval for a new borrowing plan.

According to him, the N10.79 trillion external borrowing had already been approved by the National Assembly as part of the 2026 Appropriation Act.

Abbas explained that the President was only requesting legislative approval of the terms and conditions attached to the external loans, as required by existing laws.

He further clarified that the request was different from Tinubu’s separate proposal for additional borrowing, which would be considered independently by the lawmakers.

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

The latest borrowing request comes amid growing concerns over the Federal Government’s increasing reliance on loans to finance public expenditure.

The Nigeria Labour Congress (NLC) has previously questioned the need for additional foreign borrowing, particularly following the increase in government revenue after the removal of the petrol subsidy.

The labour union has expressed concerns about the country’s rising debt obligations and the implications for the economy and future generations.

However, President Tinubu has consistently defended the government’s borrowing strategy, arguing that long-term investments in infrastructure and other critical sectors are necessary to accelerate economic growth.

He has maintained that Nigeria needs substantial investments in infrastructure, power, transportation, agriculture and other productive sectors to achieve its ambition of becoming a $1 trillion economy by 2030.

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