Tinubu asks Senate to approve $7.7bn foreign loan for 2026 budget
- President Tinubu wants the Senate to approve $7.7bn in external borrowing, about ₦10.79tn at ₦1,400 to the dollar.
- The loan would part-finance the ₦20.23tn deficit in the 2026 budget, with Eurobonds the main option.
- Senate President Akpabio says the request replaces an earlier $20.52bn proposal and sent it to committee.
President Bola Tinubu has asked the Senate to approve a $7.7bn external borrowing plan to help fund the 2026 budget deficit, according to a letter read on the floor on Wednesday.
The request is worth about ₦10.79tn at the budget exchange rate of ₦1,400 to the dollar. The deficit it is meant to part-finance stands at ₦20.23tn.
Senate President Godswill Akpabio read the letter, dated October 26, 2026, at plenary. It was then sent to the Committee on Local and Foreign Debts for further work.
What the money is for
Tinubu said the loan is part of the ₦29.2tn in new borrowing approved for the 2026 budget. That figure splits into ₦18.4tn borrowed at home and ₦10.79tn from abroad.
He said the money would support projects in defence and security, transportation, agriculture, power, education and health.
The government plans to raise the funds through several routes at once, with Eurobonds the main focus. Tinubu said Eurobonds can be arranged faster and can raise larger sums at lower cost.
He noted that the final terms, including interest rates and repayment periods, can only be fixed when the bonds are priced, since they depend on market conditions at the time. The Federal Ministry of Finance and the Debt Management Office, he said, would work to get the best terms for Nigeria.
The President also said the money would be received by the Central Bank of Nigeria on the government's behalf, boosting external reserves and supporting the naira.
What happens next
The request replaces an earlier proposal of $20.52bn and €1.045bn, which Tinubu sent to the National Assembly last week under a 2026–2027 supplementary external borrowing plan. Akpabio said he believes the new letter cancels that earlier request.
Vanguard reported that the Committee on Local and Foreign Debts is chaired by Senator Aliyu Wamakko (APC, Sokoto North). The committee will consider the request before the Senate takes a decision.
For ordinary Nigerians, the loan is tied to how the government pays for roads, power, schools and security in the 2026 budget. It also adds to the country's foreign debt, which is repaid in dollars, so the exchange rate matters. The naira support the President mentioned is the reason the government gives for borrowing abroad rather than only at home.
