By Gloria Ikibah
President Bola Tinubu has asked the House of Representatives to approve the implementation of Nigeria’s N10.79 trillion ($7.7bn) external borrowing plan under the 2026 Appropriation Act to help finance the Federal Government’s budget deficit.
In a letter to the House, Tinubu said the request was made in line with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act 2003, which require the National Assembly to approve the terms and conditions of external loans. 
The President explained that the proposed borrowing, valued at $7.707bn at the budget exchange rate of N1,400 to the dollar, formed part of the N29.218 trillion borrowing already provided for in the 2026 budget.
He said the approved borrowing was divided into N18.28 trillion in domestic loans and N10.79 trillion in external borrowing to finance the budget deficit.
Tinubu stated: “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 dollar at the budget exchange rate of USD of 1 to N1,400 for the part financing of the budget deficit of N29.218 trillion.”
Citing the DMO Act, he said: “Section 21(1) of the DMO Act states that no external loan shall be obtained or approved by the Minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution, while section 27(1) states that the National Assembly may, by a resolution approve from time to time, standard terms and conditions for the negotiation and acceptance of external loans and issuance of guarantees.”
The President said the government will explore different borrowing options simultaneously, taking into account their costs and the time required to access the funds.
He indicated that greater emphasis will be placed on Eurobond issuance, which he said could be concluded more quickly and allow the government to raise larger amounts at relatively lower costs.
On the terms of the proposed Eurobond issuance, Tinubu explained that the final conditions will depend on prevailing market circumstances at the time of pricing.
“With regard to the terms and condition of the Eurobond issuance, the Speaker may wish to note that it is market related, the final terms and conditions can only be determined at the time of pricing and will be subject to market condition prevailing at that time. The federal Ministry of finance and the Debt Management Office will ensure that Nigeria secure the best terms and conditions within the terms of the market”, he said.
Tinubu said the external borrowing will finance projects and programmes captured in the 2026 Appropriation Act, particularly in defence and security, transport, agriculture, power, education and health.
According to him, the projects are intended to strengthen the economy and sustain the gains of the administration’s macroeconomic reforms.
He added that the proceeds will also support the country’s external reserves and the naira, as the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
The President asked the House to approve the N10.79 trillion borrowing plan, allowing the government to raise the funds through one or more sources, including conventional and commercial facilities from multilateral and bilateral institutions, the International Monetary Fund, bridge financing and direct borrowing from international institutions, with emphasis on Eurobonds.
He also sought authorisation for the Minister of Finance and Coordinating Minister of the Economy, working with the DMO, to take all necessary steps to implement the resolution.
In a clarification accompanying the request, the Presidency emphasised that the proposal did not constitute a fresh borrowing plan, as the amount had already been approved by the National Assembly and provided for in the 2026 Appropriation Act.
It explained that the request was to secure the statutory approval required under the DMO Act before the external borrowing could be implemented.
The clarification further stated that the request was separate from the President’s additional borrowing proposal, which remained before the National Assembly for consideration on its own merit.
“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. Accordingly, the present request concern the statutory authorisation required to implement external borrowing already provided for in the 2026 appropriation act”, he said.
Tinubu Seeks Reps’ Approval to Raise $7.7bn External Loans for 2026 Budget
By Gloria Ikibah
President Bola Tinubu has asked the House of Representatives to approve the implementation of Nigeria’s N10.79 trillion ($7.7bn) external borrowing plan under the 2026 Appropriation Act to help finance the Federal Government’s budget deficit.
In a letter to the House, Tinubu said the request was made in line with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act 2003, which require the National Assembly to approve the terms and conditions of external loans.
The President explained that the proposed borrowing, valued at $7.707bn at the budget exchange rate of N1,400 to the dollar, formed part of the N29.218 trillion borrowing already provided for in the 2026 budget.
He said the approved borrowing was divided into N18.28 trillion in domestic loans and N10.79 trillion in external borrowing to finance the budget deficit.
Tinubu stated: “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 dollar at the budget exchange rate of USD of 1 to N1,400 for the part financing of the budget deficit of N29.218 trillion.”
Citing the DMO Act, he said: “Section 21(1) of the DMO Act states that no external loan shall be obtained or approved by the Minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution, while section 27(1) states that the National Assembly may, by a resolution approve from time to time, standard terms and conditions for the negotiation and acceptance of external loans and issuance of guarantees.”
The President said the government will explore different borrowing options simultaneously, taking into account their costs and the time required to access the funds.
He indicated that greater emphasis will be placed on Eurobond issuance, which he said could be concluded more quickly and allow the government to raise larger amounts at relatively lower costs.
On the terms of the proposed Eurobond issuance, Tinubu explained that the final conditions will depend on prevailing market circumstances at the time of pricing.
“With regard to the terms and condition of the Eurobond issuance, the Speaker may wish to note that it is market related, the final terms and conditions can only be determined at the time of pricing and will be subject to market condition prevailing at that time. The federal Ministry of finance and the Debt Management Office will ensure that Nigeria secure the best terms and conditions within the terms of the market”, he said.
Tinubu said the external borrowing will finance projects and programmes captured in the 2026 Appropriation Act, particularly in defence and security, transport, agriculture, power, education and health.
According to him, the projects are intended to strengthen the economy and sustain the gains of the administration’s macroeconomic reforms.
He added that the proceeds will also support the country’s external reserves and the naira, as the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
The President asked the House to approve the N10.79 trillion borrowing plan, allowing the government to raise the funds through one or more sources, including conventional and commercial facilities from multilateral and bilateral institutions, the International Monetary Fund, bridge financing and direct borrowing from international institutions, with emphasis on Eurobonds.
He also sought authorisation for the Minister of Finance and Coordinating Minister of the Economy, working with the DMO, to take all necessary steps to implement the resolution.
In a clarification accompanying the request, the Presidency emphasised that the proposal did not constitute a fresh borrowing plan, as the amount had already been approved by the National Assembly and provided for in the 2026 Appropriation Act.
It explained that the request was to secure the statutory approval required under the DMO Act before the external borrowing could be implemented.
The clarification further stated that the request was separate from the President’s additional borrowing proposal, which remained before the National Assembly for consideration on its own merit.
“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. Accordingly, the present request concern the statutory authorisation required to implement external borrowing already provided for in the 2026 appropriation act”, he said.
