President Bola Tinubu has written to the House of Representatives, seeking approval to implement the N10.79tn external borrowing component of the 2026 Appropriation Act to finance part of the Federal Government’s budget deficit.
The President’s request, contained in a letter addressed to the Speaker of the House, Tajudeen Abbas, was read during Wednesday’s plenary.
Tinubu asked the lawmakers to approve the raising of $7.71bn, calculated at the 2026 budget exchange rate of N1,400 to the dollar, for the implementation of the external borrowing plan.
The President said the request was in compliance with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which require the terms and conditions of external loans to be presented to and approved by the National Assembly.
He stressed that the proposed borrowing was not a fresh borrowing request, as the N10.79tn external component had already been captured in the 2026 Appropriation Act.
According to Tinubu, the 2026 budget provides for total new borrowing of N29.22tn, comprising N18.28tn in domestic borrowing and N10.79tn in external borrowing.
“I write to request 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,” the President stated.
Tinubu said the Federal Government would pursue various borrowing options simultaneously, taking into consideration the cost of borrowing and the time required to access the funds.
He, however, said greater emphasis would be placed on Eurobond issuance, which he described as a faster option for raising substantial funds at relatively lower costs.
The President noted that the final terms and conditions of any Eurobond issuance would be determined by prevailing market conditions at the time of pricing.
He assured that the Federal Ministry of Finance and the Debt Management Office would work to secure the most favourable borrowing terms available in the international market.
Tinubu said the external borrowing would be used to finance projects and programmes contained in the 2026 budget, particularly in critical sectors such as defence and security, transportation, agriculture, power, education and healthcare.
He added that the funds would also help strengthen Nigeria’s external reserves and support the naira, noting that the proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
The President further sought authorisation for the government to raise the funds through multilateral and bilateral institutions, conventional and commercial lending windows, the International Monetary Fund, bridge-financing facilities and Eurobond issuance.
He also requested 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 borrowing arrangement.
Reps Clarify Request Is Not for Fresh Borrowing
Responding to the letter, Speaker Tajudeen Abbas clarified that Tinubu was not seeking approval for a new borrowing plan.
Abbas said the N10.79tn external borrowing had already been approved by the National Assembly and provided for in the 2026 Appropriation Act.
According to him, the latest request is aimed at fulfilling the statutory requirement for parliamentary approval of the terms and conditions governing external loans before the government can access the funds.
He cited Sections 21(1) and 27(1) of the DMO Act as the legal basis for the request.
The Speaker also distinguished the request from the President’s separate proposal for additional borrowing, stressing that the two matters were independent and would be considered separately.
The development comes amid continuing concerns over the Federal Government’s reliance on borrowing to finance budget deficits and the implications for Nigeria’s debt sustainability and public finances.
Nigeria’s 2026 budget provides for a N31.55tn deficit, with N29.22tn in new borrowing identified as a major financing component.
The latest request, therefore, does not add a new borrowing figure to the 2026 budget but seeks the legislative resolution required to enable the Federal Government to access the external portion of the borrowing already approved.