Tinubu’s request, contained in a letter dated October 26, 2026, seeks approval to borrow N10,790,366,835,481, equivalent to $7,707,404,882.49, based on the budget exchange rate of N1,400 to the dollar.
The proposed external borrowing forms part of the N29.2tn new borrowing provision in the 2026 Appropriation Act, comprising N18.4tn in domestic loans and N10.79tn in external financing.
The Federal Government plans to use the funds to part-finance the projected N31.4tn budget deficit.
In the letter read during plenary, the President said the borrowing proposal complied with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require National Assembly approval for external borrowing.
He said the government would explore various financing options, taking into account borrowing costs, the benefits of each option and the time required to access the funds.
However, he indicated that priority would be given to Eurobond issuance because of its relatively faster processing time and potential to raise substantial funds.
Other financing options include concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing, loan syndications and direct borrowing from international financial institutions.
Tinubu said the final interest rates, repayment periods and other loan conditions would depend on prevailing market conditions when the transactions were concluded.
He assured lawmakers that the Ministry of Finance and the Debt Management Office would work together to secure the most favourable terms for Nigeria.
On the proposed use of the funds, the President identified defence and security, transportation, agriculture, power, education and healthcare as priority sectors expected to benefit from the financing.
He said the borrowing would provide additional resources for implementing key programmes under the 2026 budget and sustaining his administration’s economic reforms.
Tinubu also argued that the foreign currency proceeds would boost Nigeria’s external reserves, as the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
According to him, the expected increase in reserves would provide additional support for the naira and strengthen the country’s external position.
Reacting to the proposal, Akpabio urged the Federal Government to negotiate favourable terms and carefully assess the economic implications of any borrowing agreement before committing the country.
He stressed the need for a mutually beneficial arrangement that would protect Nigeria’s interests and avoid unfavourable repayment obligations.
The Senate committee is expected to examine the proposed financing arrangements, available borrowing options and the conditions under which the government intends to access the funds before the chamber takes a final decision.
The request comes amid growing concerns over Nigeria’s rising public debt, increasing debt-servicing costs and continued reliance on borrowing to finance annual budget deficits.
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