President Bola Ahmed Tinubu has asked the Senate to halt the processing of his October 26 request for a $20.52 billion and €1.045 billion loan, replacing it with a fresh external borrowing plan of $7.7 billion to partly finance the 2026 budget deficit.
The development was contained in October 29, 2026 letter read by Senate President Godswill Akpabio during plenary on Wednesday.
Akpabio told lawmakers that the new request cancels the previous request for external loans of $20.52 billion and €1.045 billion, which the President had initially sought the Senate’s approval to obtain.
The $7.7 billion forms part of the N29.2 trillion borrowing plan approved in the 2026 Appropriation Act to finance the budget deficit, estimated at N31.4 trillion.
According to the President, the external component of the borrowing plan amounts to N10.79 trillion, while N18.4 trillion is expected to be sourced domestically.
Tinubu said the external funds would be raised through a combination of financing options, including Eurobond issuance, concessional and commercial facilities from multilateral and bilateral institutions, International Monetary Fund facilities and bridge financing arrangements.
He indicated that the Federal Government would place greater emphasis on Eurobond issuance because of the speed with which funds could be raised and the possibility of securing substantial financing at a relatively lower cost.
The President said: “All the options will be pursued simultaneously, considering the costs and related benefits to the country and the time required to access the funds.
“In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude. Additionally, a large amount can be raised through Eurobonds at a relatively lower cost.”
President Tinubu explained that the final terms and conditions of the proposed borrowing would depend on prevailing market conditions at the time of pricing.
He assured the Senate that the Ministry of Finance and the Debt Management Office (DMO) would work together to secure the most favourable borrowing terms for the country.
According to him, the funds would support the implementation of projects and programmes captured in the 2026 Appropriation Act, particularly in critical sectors of the economy.
He listed defence and security, transportation, agriculture, power, education and healthcare among the priority areas expected to benefit from the proposed financing.
“The new external borrowings are required to implement the items, programmes and projects in the 2026 Appropriation Act, which are designed to consolidate and strengthen the macroeconomic reforms and gains recorded by this administration in the past few years,” he said.
The President added that the external borrowing would also contribute to strengthening Nigeria’s foreign reserves and supporting the stability of the naira.
He explained that the foreign currency proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
“It is also important to add that the process will increase the accretion to the external reserves, since the funds will be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby supporting the naira exchange rate,” Tinubu stated.
The President based his request on Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require legislative approval for external borrowing and empower the National Assembly to approve the terms and conditions for such facilities.
In the letter, President Tinubu also asked the Senate to approve the Ministry of Finance, working with the DMO, to take the necessary steps to implement the borrowing plan.
