Tinubu Seeks National Assembly Approval for $20.5bn, €1.45bn External Borrowing Plan

President Bola Tinubu has asked the National Assembly to approve the Federal Government’s supplementary external borrowing plan for 2026–2027, valued at $20.5 billion and €1.45 billion.

The proposed borrowing is intended to finance critical infrastructure, agriculture, education and other priority sectors under the administration’s development agenda. The request requires legislative consideration before the proposed financing can proceed.

The latest proposal comes amid growing debate over Nigeria’s borrowing strategy and its ability to manage an expanding debt burden. Critics have questioned the government’s continued reliance on loans despite the removal of the petrol subsidy, which was expected to release resources for other public spending priorities.

In April, the Federal Government increased its planned borrowing for 2026 by ₦11.31 trillion to ₦29.20 trillion, according to a report by Channels Television. The government also projected a fiscal deficit of ₦31.46 trillion and debt-servicing costs of ₦15.81 trillion.

Nigeria Democratic Congress presidential candidate Peter Obi warned in April that the country risked a debt crisis, arguing that borrowing had continued despite the removal of the subsidy. He also raised concerns about outstanding payments to contractors and the implementation of capital projects.

The Emir of Kano, Muhammadu Sanusi II, similarly questioned why the government continued to borrow after ending subsidy payments. He argued that Nigerians should see the benefits of the policy through improvements in public finances and living conditions.

The Federal Government has defended its borrowing strategy, maintaining that the funds are intended to support infrastructure and other development priorities. In July, Finance Minister Taiwo Oyedele also disputed claims that the Tinubu administration had borrowed about ₦80 trillion in three years, explaining that changes in reported debt stock included the effects of naira depreciation on external debt and the recognition of existing obligations, not just new borrowing.

The National Assembly previously approved an external borrowing request of about $2.347 billion in October 2025 to help finance the 2025 budget deficit and refinance maturing Eurobonds, alongside a proposed $500 million sovereign sukuk for infrastructure. As lawmakers consider the latest request, key issues will include how the proposed loans will be deployed, the transparency of spending and whether the investments will generate sufficient economic benefits to justify their cost.