The Senate has commenced formal legislative consideration of a request from President Bola Tinubu seeking authorization to raise ₦10.79 trillion ($7.707 billion) in external borrowing to help finance key infrastructure projects and cover part of the Federal Government’s 2026 budget deficit.
The executive communication, dated October 26, 2026, was officially read during plenary on Wednesday by Senate President Godswill Akpabio. According to the presidential submission, the requested external facility forms part of the overall ₦29.2 trillion new borrowing framework embedded in the 2026 Appropriation Act to offset an estimated ₦31.4 trillion national budget deficit. The total financing strategy relies on ₦18.4 trillion in domestic loans alongside the ₦10.79 trillion foreign borrowing component, calculated at an official benchmark exchange rate of ₦1,400 to the US dollar.
In his letter, President Tinubu highlighted that the request complies with statutory provisions under Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act of 2003, which require legislative authorization prior to executing external borrowing plans. The President specifically requested legislative approval for the Federal Government to raise the required funds through multiple external channels, with primary focus on Eurobond issuances, and authorized the Minister of Finance and Coordinating Minister of the Economy to execute the necessary implementation steps alongside the Debt Management Office.
Reacting to the presentation, Senate President Godswill Akpabio clarified that the newly submitted request supersedes a previous $20.3 billion borrowing framework. Akpabio noted that the updated submission provides a more explicit operational strategy, enabling the Federal Government to negotiate competitive rates across diverse international debt markets on a willing-seller, willing-buyer basis.
Following brief deliberations, the Senate President referred the executive request to the Senate Committee on Local and Foreign Debts for thorough legislative scrutiny, directing the panel to evaluate the proposed terms, lender obligations, and debt sustainability implications before submitting a full report back to the chamber as soon as practicable.
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