President Bola Tinubu has written to the House of Representatives, seeking its approval to implement the N10.7 trillion external borrowing component of the 2026 Appropriation Act to finance part of the budget deficit.
Tinubu, in a letter addressed to Speaker Abbas Tajudeen and read at plenary on Wednesday, requested the House’s approval for the government to raise $7.71 billion at the budget exchange rate of N1,400 to 1$.
According to him, the request was in compliance with Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which require the terms and conditions of external loans to be laid before and approved by the National Assembly.
Tinubu stated that the proposed borrowing was already captured in the 2026 Appropriation Act and formed part of the N29.22 trillion approved new borrowing to finance the federal government’s budget deficit.
The president explained that the approved borrowing comprises N18.28 trillion in domestic loans and N10.79 trillion in external borrowing.
“I write to request for the permission of the House of Representatives to implement the new external borrowing plan contained in the 2026 Appropriation Act in the sum of N10,790,366,835,481, which is equivalent to $7,707,404,882.49 at the budget exchange rate of $1 to N1,400, for the part financing of the budget deficit,” the letter read in parts.
President Tinubu said the government would pursue different borrowing options simultaneously, taking into consideration the cost of borrowing and the time required to access the funds.
He, however, stated that greater emphasis would be placed on Eurobond issuance, which he described as a faster means of raising substantial funds at relatively lower costs.
“All options will be pursued simultaneously considering the cost of benefit to the country as well as 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,” Tinubu stated.
The president further said that the final terms and conditions of the Eurobond issuance would depend on prevailing market conditions at the time of pricing.
Tinubu assured that the Federal Ministry of Finance and the Debt Management Office would work to secure the most favourable borrowing terms available in the international market.
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He also explained that the external loans would finance projects and programmes contained in the 2026 budget, particularly in critical sectors including defence and security, transportation, agriculture, power, education and health.
The president also maintained that the proceeds would help strengthen the country’s external reserves and support the naira, noting that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
Tinubu asked for a resolution of the House authorising the federal government to raise the funds through multilateral and bilateral institutions, conventional and commercial lending windows, the International Monetary Fund, bridge financing facilities and Eurobond issuance.
He also sought authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the DMO, to take all necessary steps to implement the proposed borrowing arrangement.
In his remarks after reading the letter, Speaker Abbas said the president was not seeking approval for a fresh borrowing plan, emphasising that the N10.79 trillion external borrowing had already been approved by the National Assembly and provided for in the 2026 Appropriation Act.
He also explained that the request was intended to fulfil the statutory requirement for parliamentary approval of the terms and conditions governing external loans before the government could proceed with implementation.
Abbas said Section 21(1) of the DMO Act required the National Assembly to be presented with the terms and conditions of external borrowing for approval by resolution, while Section 27(1) provided for parliamentary approval of standard terms and conditions for negotiating and accepting external loans.
He further said the request from the president is not a separate proposal for additional borrowing, adding that the two matters were independent and would be considered on their individual merits.
“For the avoidance of doubt, this request is distinct from the president’s more borrowing request. It neither supersede nor withdraw that request which remain subject to consideration on its own merit,” Abbas said.
He further stated that the current request concerned only the statutory authorisation required to implement external borrowing already provided for in the 2026 Appropriation Act.
