TINUBU SEEKS SENATE APPROVAL FOR $7.7BN LOAN, AKPABIO SAYS

President Bola Tinubu has requested Senate approval to secure a fresh $7.7 billion external loan, equivalent to approximately ₦10.79 trillion, to help finance the Federal Government's 2026 budget deficit.

The request was conveyed in a letter dated October 26, 2026, which Senate President Godswill Akpabio read during plenary on Wednesday, November 4.

According to Akpabio, the latest borrowing proposal effectively replaces an earlier request seeking approval for $20.52 billion and €1.045 billion in external loans under the Federal Government's 2026–2027 Supplementary External Borrowing Plan.

Tinubu explained that the proposed borrowing forms part of the financing arrangements approved under the 2026 Appropriation Act, which provides for ₦29.2 trillion in new borrowing. This comprises ₦18.4 trillion in domestic borrowing and approximately ₦10.79 trillion in external financing.

The President said the funds would support the implementation of priority projects and programmes across critical sectors, including defence and security, transportation, agriculture, power, education and healthcare.

He also explained that the government intended to explore different sources of financing, including concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing and Eurobond issuance.

However, greater emphasis would be placed on Eurobond issuance because of its potential to provide substantial funding within a shorter period.

Tinubu added that the proceeds would be received through the Central Bank of Nigeria and could strengthen the country's external reserves, providing additional support for the stability of the naira.

Reacting to the request, Akpabio described the revised proposal as more explicit, noting that the government would have to explore different financing options to secure favourable borrowing terms.

The Senate President subsequently referred the request to the Senate Committee on Local and Foreign Debts for detailed consideration and directed it to report back as soon as practicable.

The proposed borrowing has renewed attention on Nigeria's growing public debt and the government's reliance on external financing to fund budgetary commitments.

While the Federal Government maintains that the loan will support critical development projects and economic stability, questions remain about repayment obligations, borrowing costs and the country's long-term debt sustainability.

The Senate's decision will determine whether the administration receives the legislative approval required to proceed with the proposed external borrowing.