President Bola Tinubu has sent a letter to the House of Representatives requesting approval to implement the N10.79 billion external borrowing portion of the 2026 Appropriation Act in order to finance part of the Federal Government’s budget deficit.
In a letter addressed to the Speaker of the House, Tajudeen Abbas, and read during Wednesday’s plenary, the President sought the House’s approval for the government to raise $7.71bn at the budget exchange rate of N1,400 to a dollar.
Tinubu explained that the request was made in line with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which stipulate that the terms and conditions of external loans must be laid before and approved by the National Assembly.
He noted that the proposed borrowing was already provided for in the 2026 Appropriation Act and constituted part of the N29.22tn in approved new borrowing meant to finance the Federal Government’s budget deficit.
According to the president, the approved borrowing consists of N18.28tn in domestic loans 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,” he stated.
Tinubu stated that the government would explore various borrowing options at the same time, weighing both the cost of borrowing and the time it takes to access the funds.
He nevertheless suggested that more focus would be placed on issuing Eurobonds, which he called a quicker way to raise significant funds at comparatively lower costs.
“All options will be pursued simultaneously, considering the cost-benefit to the country as well as the time required to access the funds. In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude,” the president said.
He noted as well that the final terms and conditions for the Eurobond issuance would hinge on market conditions prevailing at the time of pricing.
Tinubu gave assurances that the Federal Ministry of Finance and the DMO would strive to obtain the most favorable borrowing terms available on the international market.
The President went on to explain that the external loans would fund projects and programs in the 2026 budget, especially in critical areas such as defense and security, transportation, agriculture, power, education, and health.
He further contended that the proceeds would help boost the country’s external reserves and shore up the naira, pointing out that the Central Bank of Nigeria would receive the funds on behalf of the Federal Government.
In the resolution submitted to the House, Tinubu sought authorization for the government to raise the funds via multilateral and bilateral institutions, conventional and commercial lending channels, the International Monetary Fund, bridge financing facilities, and Eurobond issuance.
He also requested authorization for the Minister of Finance and Coordinating Minister of the Economy, working together with the DMO, to take every necessary step to implement the proposed borrowing arrangement.
In response to the request, Abbas made clear that the President was not asking for approval of a new borrowing plan, emphasizing that the N10.79tn external borrowing had already been sanctioned by the National Assembly and included in the 2026 Appropriation Act.
Abbas clarified that the request was meant to satisfy the statutory requirement for parliamentary approval of the terms and conditions governing external loans before the government could move ahead with implementation.
He explained that Section 21(1) of the DMO Act requires that the terms and conditions of external borrowing be presented to the National Assembly for approval by resolution, while Section 27(1) provides for parliamentary approval of standard terms and conditions for negotiating and accepting external loans.
The Speaker went on to distinguish the request from the President’s separate proposal for additional borrowing, observing that the two matters were independent and would each be considered on its own merits.
“For the avoidance of doubt, this request is distinct from the president’s more borrowing request. It neither supersedes nor withdraws that request, which remains subject to consideration on its own merit,” Abbas said.
He added that the current request related only to the statutory authorization needed to implement external borrowing that had already been provided for in the 2026 Appropriation Act.
This clarification matters given concerns about the Federal Government’s increasing reliance on borrowing to finance budget deficits and what that means for debt sustainability and public finances.
Nigeria’s 2026 budget provides for a deficit of N31.55tn, with new borrowing of N29.22tn identified as a major financing component.
The latest request therefore does not introduce a new borrowing figure into the 2026 budget; instead, it seeks to obtain the legislative resolution required to access the external portion of the borrowing already approved.
