Tinubu seeks House of Reps approval for N10.79 Trillion external borrowing

President Bola Tinubu has written to members of the House of Representatives seeking statutory approval to implement the N10.79 trillion external borrowing approved in the 2026 Appropriation Act.

The President said the request for loan approval is to partially finance the 2026 budget deficit.

The request is contained in a letter from the President and read on the floor of the House during plenary by the Speaker, Tajudeen Abbas.

Tinubu noted that the borrowings are for the implementation of the projects contained in the Appropriations Act to strengthen the macro gains made so far.

What he is saying

President Tinubu stated in the letter that the 2026 Appropriation Act provided for N29.2 trillion in new borrowings to help finance the budget deficit, which is estimated at N31.4 trillion.

• He explained that the total new borrowings were further subdivided into new domestic borrowings of N18.4 trillion and new external borrowings of N10.79 trillion.
• President Tinubu said the request seeks approval for N10.79 trillion, equivalent to $7.70 billion at the budget exchange rate of N1,400 per dollar.
• He said the external financing would be sourced through various channels, including Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, as well as International Monetary Fund facilities.

Other sources would include bridge financing, loan syndications and direct borrowing from international financial institutions.

More details 

President Tinubu noted that emphasis would be on the issuance of Eurobonds, which is typically faster to conclude, and that all options would be pursued simultaneously, considering cost, relative benefits and time required to access the funds.

• He explained that the proceeds are targeted at critical capital projects across key sectors, including infrastructure, defence and security, agriculture, healthcare, power, transportation and education.
• He also sought authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office, to take the necessary steps to implement the borrowing arrangement once approved.
• He urged prompt legislative clearance to enable the executive to implement capital programmes and infrastructural interventions captured in the 2026 budget.

Following the reading of the letter, the House referred the executive communication to the joint committee on Aids, Loans and Debt Management and Finance for further legislative action.

More to follow…