Tinubu seeks Senate approval for $20.5bn, €1.05bn external loans

President Bola Tinubu has formally asked the Senate to approve a fresh external borrowing plan of $20.52 billion and €1.05 billion to fund projects across the country. The request, contained in a letter read by Senate President Godswill Akpabio during Tuesday's plenary, covers the 2026–2027 fiscal period.

The exact amounts are $20,517,755,901 and €1,045,083,643, according to the letter. Tinubu said the money would be used to tackle Nigeria's infrastructure deficit and fill funding gaps in key sectors.

The President listed power, transportation, healthcare, education, agriculture, water supply, security, job creation and financial management reforms as the main areas to benefit. He said the projects were chosen after technical and economic assessments, with their expected impact on development in mind.

Tinubu also said the investments would create jobs, promote skills and entrepreneurship, reduce poverty and strengthen food security. Most of the projects, he added, would be spread across the 36 states and the Federal Capital Territory.

In the letter, the President argued that the scale of Nigeria's infrastructure needs made additional external borrowing necessary. "It has become essential to pursue prudent external borrowings to close the financing shortfall," he said.

He urged the National Assembly to consider and approve the plan quickly so that funds can be released and projects implemented without delay.

What happens next

After reading the letter, Akpabio referred the request to the Senate Committee on Local and Foreign Debts, which is led by Senator Haruna Manu. The committee is expected to work with the Committees on Appropriations and Finance and report back within one week.

Akpabio noted that parts of the borrowing plan had appeared in earlier budget and borrowing arrangements, though he was unsure of the exact period covered by the previous approval. "The external borrowing plan was approved as far back as 2025 to 2027, I think to 2028 or thereabout," he said.

The letter did not give a project-by-project breakdown, the specific financing terms or how much is earmarked for each sector. The committee's review is expected to clarify these details before the Senate decides whether to approve the request.

For ordinary Nigerians, the decision could affect how quickly work begins on power, roads, hospitals and water projects. It also adds to the country's external debt, which is why lawmakers are expected to scrutinise the terms closely.