President Bola Ahmed Tinubu has written to Speaker of the House of Representatives Tajudeen Abbas seeking parliamentary approval to raise N10.79 trillion (about $7.7 billion) in external borrowing as part of the 2026 Appropriation Act.
In the letter, Tinubu clarified that the request does not constitute a new borrowing plan; the National Assembly had already authorised the amount and incorporated it into the 2026 budget. The president said the letter is intended to satisfy the statutory requirements of Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which mandate parliamentary approval of the terms and conditions governing external loans.
Section 21(1) bars the Minister of Finance from obtaining or approving external loans unless the terms have been presented to and approved by the National Assembly, while Section 27(1) gives the Assembly the power to approve standard terms for negotiating and accepting such loans and issuing guarantees.
The letter outlines a range of financing options, including conventional and commercial windows from multilateral and bilateral institutions, the International Monetary Fund, bridge‑financing facilities and direct borrowing from international lenders. Tinubu emphasised that Eurobond issuance would be prioritised, as it can be completed more quickly and may provide larger sums at relatively lower costs.
He said the external borrowing would fund projects and programmes in priority sectors such as defence and security, transportation, agriculture, power, education and health, and would support the administration’s macro‑economic reforms, strengthen external reserves and help stabilise the naira exchange rate. The request is separate from an earlier borrowing proposal that remains before the legislature for consideration on its own merits.
<small>Source: Vanguard News — read the original story there.</small>
