*Withdraws earlier request for $20.5bn, presents fresh $7.7bn
*Akpabio says President’s request for fresh loan effectively supersedes earlier $20.5bn
*Tinubu had on Wednesday asked NASS to approve $7.7bn to finance 2026 budget deficit
*Says request was made pursuant to Section 21(1), 27(1) of DMO Act, 2003
By Olugbenga Salami
President Bola Tinubu has withdrawn an earlier external borrowing proposal of $20.5 billion and sought National Assembly approval for a fresh $7.7 billion loan to finance part of the 2026 budget deficit.
The Senate President, Godswill Akpabio, disclosed this on Wednesday while reading a letter from Tinubu, dated October 26, 2026, during plenary.
The president is seeking approval to borrow N10.79 trillion, equivalent to approximately $7.7 billion, using the budget exchange rate of N1,409 to the dollar.
Tinubu said the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which require the National Assembly’s approval for external borrowing and the terms and conditions governing such loans.
According to the president, the 2026 Appropriation Act provides for N29.2 trillion in new borrowing to finance an estimated budget deficit of N31.4 trillion.
The borrowing plan comprises N18.4 trillion in domestic loans and N10.79 trillion in external financing, with the latest request covering the external component.
Explaining the change in the borrowing proposal, Akpabio said the new request effectively superseded the earlier $20.3 billion proposal because it provided greater clarity on the government’s funding strategy.
“I believe this letter effectively supersedes the earlier request for 20.3 billion US dollars because the present request is more explicit. It also recognises that the borrowing will not necessarily come from one source,” he said.
He added that the government would explore available funding options to secure the most favourable terms under a willing-seller, willing-buyer arrangement.
Akpabio subsequently referred the request to the Senate Committee on Local and Foreign Debts for consideration and a report as soon as practicable.
In the letter, Tinubu explained that the Federal Government planned to raise the $7.7 billion through one or a combination of several funding sources.
These include concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing, direct borrowing from international financial institutions and Eurobond issuance.
He said the options would be pursued simultaneously, with consideration given to their respective costs, benefits and the time required to access the funds.
However, the president indicated that the government would place greater emphasis on Eurobond issuance because of its relatively faster completion process and capacity to raise substantial funds at competitive costs.
“The final terms and conditions, including interest rates and tenures, will be determined at the time of pricing, depending on prevailing market conditions,” he said.
Tinubu assured that the Federal Ministry of Finance and the Debt Management Office would work together to secure the most favourable borrowing conditions for the country.
He explained that the proposed external borrowing would finance priority programmes and projects captured in the 2026 Appropriation Act.
The projects, according to him, cover critical sectors, including defence and security, transportation, agriculture, power, education and healthcare.
The president also argued that the external loan would help strengthen Nigeria’s foreign reserves, as the proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
“This, in turn, is expected to support the stability of the naira,” he said.
Tinubu therefore urged the National Assembly to authorise the Federal Government to implement the N10.79 trillion external borrowing plan and approve the use of one or more of the proposed funding sources, with greater emphasis on Eurobond issuance.
He also sought legislative approval for the Minister of Finance and Coordinating Minister of the Economy to work with the DMO in implementing the resolution.
The president expressed the hope that the Senate would consider and approve the request in good time to facilitate the implementation of the 2026 budget.
