Tinubu Seeks Reps’ Approval to Access N10.79tn External Loan for 2026 Budget

President Bola Tinubu has asked the House of Representatives to approve the implementation of the N10.79tn external borrowing component of the 2026 Appropriation Act to help finance the Federal Government’s budget deficit.

The President made the request in a letter addressed to the Speaker of the House, Tajudeen Abbas, which was read during Wednesday’s plenary session.

Tinubu is seeking approval to raise $7.71bn, equivalent to N10.79tn at the budget exchange rate of N1,400 to one dollar.

In the letter, the President explained that the request was made in line with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003. The provisions require the terms and conditions of external loans to be presented to and approved by the National Assembly.

He noted that the proposed external borrowing was already captured in the 2026 Appropriation Act as part of the N29.22tn approved new borrowing to finance the Federal Government’s budget deficit.

According to Tinubu, the approved borrowing comprises N18.28tn in domestic loans and N10.79tn in external financing.

“I write to request for the permission of the House of Representatives to implement the new external borrowing plan contained in the 2026 Appropriation Act in the sum of N10,790,366,835,481, which is equivalent to $7,707,404,882.49 at the budget exchange rate of $1 to N1,400, for the part financing of the budget deficit,” he stated.

The President said the government would explore different borrowing options simultaneously, taking into account the cost of financing and the time required to access the funds. However, he indicated that priority would be given to Eurobond issuance, which he described as a faster way of raising substantial funds.

He added that the final terms and conditions of the Eurobond issuance would depend on prevailing international market conditions when the funds were being raised. Tinubu also assured that the Ministry of Finance and the Debt Management Office would work towards securing favourable borrowing terms.

The President said the external loans would finance projects and programmes contained in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.

He further argued that the proceeds would help strengthen Nigeria’s external reserves and support the naira, explaining that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.

Tinubu also requested authorisation to raise the funds through multilateral and bilateral institutions, conventional and commercial lending facilities, the International Monetary Fund, bridge financing arrangements and Eurobond issuance.

He sought approval for the Minister of Finance and Coordinating Minister of the Economy, working with the Debt Management Office, to take the necessary steps to implement the borrowing arrangement.

Responding to the request, Speaker Abbas clarified that the President was not seeking approval for a fresh borrowing plan. He explained that the N10.79tn external borrowing had already been approved by the National Assembly and included in the 2026 Appropriation Act.

According to Abbas, the latest request was intended to fulfil the statutory requirement for legislative approval of the terms and conditions governing external loans before implementation.

He explained that Section 21(1) of the DMO Act requires the National Assembly to approve the terms and conditions of external borrowing through a resolution, while Section 27(1) provides for approval of standard terms for negotiating and accepting external loans.

The Speaker also clarified that the request was separate from the President’s additional borrowing proposal, which would be considered independently.

“For the avoidance of doubt, this request is distinct from the president’s more borrowing request. It neither supersede nor withdraw that request which remain subject to consideration on its own merit,” Abbas said.

The development comes amid concerns about the Federal Government’s growing reliance on borrowing to finance budget deficits and the possible implications for Nigeria’s debt sustainability.

The 2026 budget provides for a deficit of N31.55tn, with N29.22tn in new borrowing identified as a major source of financing.

The latest request, therefore, does not introduce a new borrowing figure into the 2026 budget but seeks the legislative authorisation required to access the already approved external borrowing component.