President Bola Ahmed Tinubu has asked the House of Representatives to approve the implementation of Nigeria’s N10.79 trillion external borrowing plan, equivalent to approximately $7.71 billion, to finance part of the Federal Government’s 2026 budget deficit.

The request, conveyed in a letter to the House and read during plenary on Wednesday, November 11, 2026, seeks legislative authorisation for the government to access the external loans already provided for in the 2026 Appropriation Act.

Tinubu explained that the proposed borrowing was necessary to finance critical projects and programmes captured in the national budget and sustain the administration’s economic reform agenda.

The President’s request represents the external component of the N29.218 trillion new borrowing approved under the 2026 budget, which also provides for N18.28 trillion in domestic borrowing.

According to the letter, the N10.79 trillion external borrowing is equivalent to $7.707 billion at the budget exchange rate of N1,400 to the dollar.

Tinubu said the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which require the terms and conditions of external loans to be presented to the National Assembly for approval.

He stated that the government intended to explore different financing options simultaneously, taking into consideration the cost of borrowing, the benefits to the country and the time required to access the funds.

The President, however, indicated that greater emphasis would be placed on Eurobond issuance, which he described as a relatively faster means of raising substantial funds at competitive costs.

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Other proposed sources of financing include concessional and commercial loans from multilateral and bilateral institutions, facilities from the International Monetary Fund (IMF), bridge financing arrangements, loan syndications and direct borrowing from international financial institutions.

Tinubu explained that the final terms and conditions, including interest rates and repayment periods, would depend on prevailing conditions in the international financial markets when the loans were priced.

He assured lawmakers that the Federal Ministry of Finance and the Debt Management Office would work together to secure the most favourable borrowing conditions available to Nigeria.

The President said the funds would be deployed to finance critical capital projects and interventions in defence and security, transportation, agriculture, power, education and healthcare.

He also argued that the foreign currency proceeds would strengthen Nigeria’s external reserves and provide additional support for the stability of the naira.

According to him, the funds would be received by the Central Bank of Nigeria (CBN) on behalf of the Federal Government.

Tinubu consequently sought the House’s authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the DMO, to take all necessary steps to implement the proposed borrowing arrangements.

Following the presentation of the presidential letter, Speaker of the House of Representatives, Tajudeen Abbas, referred the request to the joint committees on Aids, Loans and Debt Management, and Finance for further legislative scrutiny.

Abbas clarified that the President was not seeking approval for an entirely fresh borrowing plan, explaining that the N10.79 trillion external borrowing had already been approved as part of the 2026 budget.

He said the latest request was intended to fulfil the statutory requirement for legislative approval of the terms and conditions governing external loans before the government could proceed with their implementation.

The Speaker also stressed that the request was separate from another presidential proposal for additional borrowing, which remained before the National Assembly for consideration on its own merits.

The development comes amid growing public concerns over Nigeria’s rising debt obligations and the Federal Government’s continued reliance on borrowing to finance budget deficits.

The 2026 budget provides for a deficit of approximately N31.55 trillion, with new borrowing of N29.218 trillion forming a major component of the government’s financing strategy.

The President had earlier withdrawn a previous external borrowing proposal of about $20.5 billion and €1.045 billion under the 2026–2027 Supplementary External Borrowing Plan, replacing it with the revised $7.7 billion request.

The revised proposal was presented as a more clearly defined financing arrangement, allowing the government to explore different international funding sources rather than depend on a single borrowing channel.

However, concerns over the country’s debt burden have continued to generate debate, particularly over the capacity of government revenue to support rising debt servicing obligations.

The Federal Government has maintained that borrowing is necessary to address Nigeria’s infrastructure deficit, finance strategic development projects and stimulate economic growth.

The latest request will now undergo further consideration by the relevant House committees before any final legislative resolution on the proposed external financing is reached.