The Nigerian Senate has begun scrutinising President Bola Tinubu’s request for a foreign loan of $7.7 billion (N10.79 trillion) to help finance the country’s 2026 budget.
The proposed loan, which would be sourced from external lenders, is intended to bridge financing gaps as the government prepares its fiscal plan for the 2026 financial year.
Senators say the proposal will be examined by the Senate’s Committee on Appropriation and Finance, which will assess the loan’s terms, compliance with constitutional and fiscal rules, and its impact on the nation’s debt profile.
External borrowing has been a recurring feature of Nigeria’s fiscal strategy; previous administrations have also turned to foreign loans to fund development projects and cover budget shortfalls.
The Senate’s review will determine whether the loan can be approved, influencing the government’s ability to meet spending priorities for 2026 and shaping the broader outlook on Nigeria’s debt sustainability.
<small>Source: Punch Nigeria — read the original story there.</small>