Tinubu Asks Senate to Approve $7.7bn External Loan for 2026 Budget Deficit

By Trending9ja Staff • November 4, 2026 • 1 min read

President Bola Tinubu has formally asked the Senate to clear a foreign borrowing request of $7.7 billion to help fund the deficit in the 2026 national budget. The communication was delivered to the upper legislative chamber through a letter read by Senate President Godswill Akpabio during Wednesday's plenary, according to reports from Punch and Channels TV.

The requested loan equals roughly N10.79 trillion when converted at the budget benchmark rate of N1,400 per US dollar. The funds represent the foreign component of the overall N29.2 trillion in new borrowing under the 2026 Appropriation Act, which also includes N18.4 trillion in domestic borrowing to address a total deficit of N20.23 trillion.

In the letter dated October 26, 2026, President Tinubu explained that the Federal Government intends to explore several funding options, with a focus on issuing Eurobonds. Punch reported that Eurobonds were prioritized because they offer a faster route to raise large sums at lower costs, depending on market conditions at the time of pricing.

The President noted that the borrowed funds will be allocated to key national projects in sectors such as defense, transport, power, agriculture, education, and health. He added that receiving the funds through the Central Bank of Nigeria would also boost foreign reserves and provide stability for the naira.

Senate President Akpabio clarified that this new application replaces a previous borrowing proposal of $20.52 billion and €1.045 billion previously submitted to the National Assembly. Following the reading of the letter, the Senate referred the loan request to its Committee on Local and Foreign Debts for further legislative evaluation.

Sources: Punch · Channels TV