Tinubu Seeks Senate Approval for $20.52bn, €1.045bn External Loans, N269.44bn Debt Settlement

President Bola Tinubu has asked the National Assembly to approve a supplementary external borrowing plan worth approximately $20.52 billion and €1.045 billion to finance infrastructure and development projects across Nigeria.

The President also sought legislative approval to establish and expand the Federal Government’s Promissory Note Programme to settle outstanding verified liabilities amounting to N269.44 billion.

Tinubu’s borrowing request was conveyed in a letter addressed to Senate President Godswill Akpabio, who read the communication during plenary on Tuesday. The proposed external financing covers the 2026–2027 fiscal period and is expected to support projects across critical sectors, including power, transportation, agriculture, healthcare, education, water supply, security and employment generation.

In the letter, the President argued that additional external borrowing had become necessary to address Nigeria’s infrastructure funding gap, sustain economic growth and improve living conditions. He said the proposed projects were selected following technical and economic assessments and were expected to contribute to the country’s socioeconomic development.

According to the letter, the proposed facilities amount to $20,517,755,901 and €1,045,083,643. Tinubu said the investments would support employment creation, skills acquisition, entrepreneurship, poverty reduction and food security. He added that most of the projects would be implemented across the 36 states and the Federal Capital Territory.

The President identified power, transportation and healthcare among the sectors expected to benefit from the proposed financing. He urged lawmakers to give the request urgent consideration, arguing that prompt approval would facilitate the timely release of funds and implementation of the planned projects.

Following the presentation of the letter, Akpabio referred the borrowing proposal to the Senate Committee on Local and Foreign Debts for further legislative consideration. The committee was directed to report back to the Senate within one week and may work with other relevant committees during its review.

However, the letter did not provide a detailed breakdown of the proposed borrowing by individual project or sector, nor did it specify the financing terms for the facilities. The proposal therefore remains subject to legislative scrutiny and approval.

Separately, Tinubu asked the National Assembly to approve the issuance of promissory notes worth N269.44 billion to settle outstanding contractual, project-related and other verified financial obligations owed to various creditors.

The request was contained in a letter from the Secretary to the Government of the Federation, George Akume, dated August 18, 2026, and received by the Office of the Speaker on October 21. The letter put the verified liabilities at N269,446,402,822.56 following a review by relevant ministries, departments and agencies.

According to Akume, the programme is intended to provide a structured framework for settling the outstanding obligations while ensuring that only verified and validated claims are included. The proposal also seeks authorisation for the Minister of Finance, working with the Debt Management Office and other relevant agencies, to implement the arrangement.

Akume said the promissory note scheme would help prevent further accumulation of interest, penalties and other costs associated with unpaid obligations. He added that the programme could provide relief to affected creditors while allowing the Federal Government to spread repayment obligations over an appropriate period rather than placing an immediate and disproportionate burden on its cash flow.

The SGF noted that the government had previously used the programme to settle inherited domestic debts and contractual obligations, subject to the necessary executive and legislative approvals. He urged lawmakers to consider the latest request urgently, citing the size and age of some outstanding liabilities.

The proposed borrowing and debt-settlement measures now require legislative consideration, with the government arguing that the funds would support development projects and help address existing financial obligations.