President Bola Ahmed Tinubu has withdrawn his earlier request for the National Assembly’s approval of a $20.5 billion and €1.04 billion external borrowing plan, seeking approval for a fresh $7.7 billion loan to part-finance the 2026 budget deficit.
Gatekeepers News reports that the new request, contained in a letter dated October 26, 2026, was read by Senate President Godswill Akpabio during Wednesday’s plenary.
Tinubu is seeking approval to borrow 10.79 trillion naira, equivalent to approximately 7.7 billion dollars at the budget exchange rate of 1,409 naira to the dollar.
The President said the proposed borrowing was provided for in the 2026 Appropriation Act and would help finance a budget deficit estimated at 31.4 trillion naira.
According to the letter, the approved new borrowing for the 2026 budget comprises 18.4 trillion naira in domestic loans and 10.79 trillion naira in external financing.
Tinubu explained that the government intends to raise the funds through one or a combination of financing options, including concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing and Eurobond issuance.
He said greater emphasis would be placed on Eurobonds because they could be concluded more quickly and potentially raise larger amounts at relatively competitive costs.
The President added that the final interest rates, repayment periods and other conditions would depend on prevailing market conditions when the funds are raised.
Tinubu said the proposed borrowing would support priority projects and programmes in defence and security, transportation, agriculture, power, education and healthcare.
He also said the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government, helping to strengthen external reserves and support the stability of the naira.
Reacting to the request, Akpabio said the new proposal effectively superseded the earlier borrowing plan because it provided clearer details on the intended funding sources.
The Senate President subsequently referred the request to the Senate Committee on Local and Foreign Debts for further legislative consideration, directing it to report back as soon as practicable.
The latest development comes about a week after Tinubu sought legislative approval for external loans totalling 20.52 billion dollars and 1.04 billion euros under the 2026–2027 Supplementary External Borrowing Plan.
The earlier proposal was intended to finance projects covering infrastructure, agriculture, healthcare, education, water supply, security and employment generation across the country.
