President Bola Tinubu has written to the House of Representatives seeking parliamentary approval to implement the external borrowing component of the 2026 Appropriation Act, amounting to ₦10.79 trillion (about $7.71 billion at the budget exchange rate of ₦1,400 to the dollar). The letter was read aloud by Speaker Tajudeen Abbas during a plenary session on Wednesday.
The external borrowing request forms part of a broader ₦29.22 trillion new‑borrowing package approved for the 2026 fiscal year, which includes ₦18.28 trillion in domestic borrowing. Tinubu said the external loans are intended to finance a portion of the federal budget deficit and to comply with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.
In the letter, the president indicated that the government will pursue several financing avenues simultaneously, with particular emphasis on issuing Eurobonds because of their relatively faster completion. He noted that the final terms of any Eurobond issuance will depend on prevailing market conditions, and that the Ministry of Finance and the DMO will work to secure favourable terms in the international market.
According to Tinubu, the external loan proceeds will be used to fund projects and programmes in the 2026 budget, especially in defence and security, transportation, agriculture, power, education and health. He also said the funds would help bolster Nigeria’s external reserves and support the naira, with the proceeds to be received by the Central Bank of Nigeria on behalf of the federal government.
Speaker Abbas clarified that the president is not requesting a fresh borrowing plan; the ₦10.79 trillion external component has already been approved by the National Assembly and is included in the Appropriation Act. The request is meant to satisfy the statutory requirement that the terms and conditions of external loans be presented to the legislature for approval, as mandated by the DMO Act. Abbas distinguished this from a separate borrowing proposal that remains under separate consideration.
<small>Source: The Sun Nigeria — read the original story there.</small>
