President Tinubu Asks House Of Representatives To Approve N10.79 Trillion Foreign Loan

President Bola Tinubu has written to the House of Representatives seeking statutory approval to implement the N10.79 trillion external borrowing already provided for in the 2026 Appropriation Act.

The President said the request is to partially finance the 2026 budget deficit and to fund projects contained in the budget. The letter was read on the floor of the House during plenary by the Speaker, Tajudeen Abbas.

In the letter, Tinubu recalled that the 2026 Appropriation Act provided for N29.2 trillion in new borrowings to help finance a budget deficit estimated at N31.4 trillion. He explained that the total new borrowings were further subdivided into new domestic borrowings of N18.4 trillion and new external borrowings of N10.79 trillion.

He said the external portion, equivalent to 7.70 billion dollars at the budget exchange rate of N1,400 per dollar, is the subject of the present request.

The President clarified that the request does not constitute a fresh borrowing plan, noting that the National Assembly had already approved the amount in the Appropriation Act. He said the current request is aimed at fulfilling the statutory requirements of Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which require parliamentary approval of the terms and conditions governing external loans.

Tinubu explained that the external financing would be sourced through various channels, including Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, as well as International Monetary Fund facilities. He said emphasis would be on the issuance of Eurobonds, which is typically faster to conclude, and that all options would be pursued simultaneously, considering cost, relative benefits and time.

He said the proceeds are targeted at critical capital projects across key sectors, including infrastructure, defence and security, agriculture, healthcare, power, transportation and education.

The President argued that the borrowings are for the implementation of projects contained in the Appropriations Act to strengthen the macro gains made so far. He added that the projects are expected to support growth and improve living conditions across the country.

He also sought authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office, to take the necessary steps to implement the borrowing arrangement once approved.

The President noted that the final interest rates, repayment periods and other conditions would depend on prevailing market realities when the transactions were concluded.

Following the reading of the letter, the House referred the executive communication to the joint committee on Aids, Loans and Debt Management and Finance for further legislative action. The request comes after a similar request was sent to the Senate, and amid public debate over rising debt, with critics demanding more details on spending and supporters insisting that long term investment is needed to build a stronger economy.