President Bola Tinubu has asked the House of Representatives to approve N10.79 trillion in external borrowing to help finance the Federal Government’s 2026 budget deficit.
The request was contained in a letter read on the floor of the House on Wednesday by Speaker Tajudeen Abbas.
According to the President, the 2026 Appropriation Act provides for N29.2 trillion in new borrowing to finance a projected budget deficit of N31.4 trillion. The borrowing comprises N18.4 trillion in domestic financing and N10.79 trillion in external borrowing.
The proposed external borrowing is equivalent to about $7.70 billion at the budget exchange rate of N1,400 to the dollar.
Tinubu said the funds would be raised through a combination of Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing, loan syndications and direct borrowing from international financial institutions.
He said the government would place emphasis on Eurobond issuance because of its relatively faster execution, while considering the cost, benefits and time required to access other funding sources.
The proceeds are expected to finance critical capital projects in infrastructure, defence and security, agriculture, healthcare, power, transportation and education.
The President also requested authorisation for the Minister of Finance and Coordinating Minister of the Economy, working with the Debt Management Office, to take the necessary steps to implement the borrowing arrangement once approved.
Following the presentation, the House referred the request to its joint committees on Aids, Loans and Debt Management and Finance for further consideration.
Tinubu urged the lawmakers to grant prompt approval to enable the Federal Government to implement the capital programmes and infrastructure projects contained in the 2026 budget.
