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President Bola Tinubu has asked the Senate to approve N10.79 trillion in external borrowing, equivalent to approximately $7.7 billion, to finance part of the Federal Government’s 2026 budget deficit.
The request was contained in a letter addressed to Senate President Godswill Akpabio and read during plenary, according to the News Agency of Nigeria (NAN).
Tinubu said the 2026 Appropriation Act provided for N29.2 trillion in new borrowings to finance a budget deficit of about N31.4 trillion.
The borrowing plan comprises N18.4 trillion in domestic borrowing and N10.79 trillion in external financing.
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He explained that the government would raise the external component through one or a combination of funding sources, including concessional and commercial loans from multilateral and bilateral institutions, the International Monetary Fund, bridge financing facilities, direct borrowing from international financial institutions and Eurobond issuance.
The president said the government would assess the available options based on their respective costs, benefits and access timelines, with greater emphasis on Eurobond issuance because of its relatively faster execution and capacity to raise larger amounts at competitive costs.
External borrowing to fund priority projects
Tinubu said the proposed funds would finance priority projects across defence and security, transportation, agriculture, power, education and healthcare.
He noted that the final borrowing terms, including interest rates and repayment tenures, would depend on prevailing market conditions when the funds are priced.
The Federal Ministry of Finance and the Debt Management Office would work to secure the most favourable terms for the country, he added.
Tinubu also requested approval for the borrowing to be raised at the 2026 budget exchange rate of N1,409 to the dollar, with the proceeds to be received by the Central Bank of Nigeria on behalf of the Federal Government.
He said the funds would also support the country’s external reserves.
Senate refers request to debt committee
Senate President Godswill Akpabio said the latest correspondence superseded an earlier request for $20.3 billion, describing the new letter as more explicit about the government’s borrowing requirements.
He said the government would explore different funding sources to secure favourable borrowing terms through a willing-seller, willing-buyer arrangement.
Akpabio subsequently referred the request to the Senate Committee on Local and Foreign Debt for further consideration and directed it to report back as soon as practicable.
Nigeria’s public debt continues to rise
The latest borrowing request comes amid an increase in Nigeria’s public debt stock.
- Nigeria’s total public debt rose to N166.79 trillion as of June 30, 2026, from N159.35 trillion at the end of March, according to Debt Management Office data.
- Domestic debt accounted for N91.59 trillion, representing 54.91% of the total debt portfolio.
- The country’s debt stock has also increased significantly since Tinubu assumed office in 2023. DMO data showed that Nigeria’s total public debt stood at N87.38 trillion as of June 30, 2023.
External and domestic debt have both grown since then. Nigeria’s external debt rose from $42.49 billion in December 2023 to $51.86 billion by December 2025, while domestic debt increased from N59.1 trillion to N89.4 trillion over the same period.
Last month, Tinubu sought Senate approval for a supplementary external borrowing plan of $20.52 billion and €1.05 billion for 2026–2027 to finance critical infrastructure and development projects across the country.
