President Bola Ahmed Tinubu has sought the approval of the Senate for a fresh external borrowing of $7.707 billion, equivalent to N10.79 trillion, to part-finance the 2026 budget deficit.

The request was contained in a letter dated October 26, 2026, and addressed to Senate President Godswill Akpabio, which was read during plenary on Wednesday. The President said the borrowing is to implement the external borrowing provision in the 2026 Appropriation Act.

According to the President, the 2026 Appropriation Act provided for new borrowings of approximately N29.2 trillion to finance a budget deficit estimated at N31.4 trillion, comprising N18.4 trillion domestic borrowing and N10.79 trillion external borrowing. The current request covers the external component.

Tinubu said the proposed funds would be raised through one or a combination of sources including Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities, bridge financing and direct borrowing from international financial institutions. He noted greater emphasis would be placed on Eurobond issuance for its speed and competitive cost.

The President anchored his request on Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which require that external loan terms be submitted to and approved by the National Assembly by resolution.

Senate President, Akpabio disclosed that the new $7.7 billion request effectively supersedes an earlier request for $20.52 billion and €1.045 billion submitted last week, describing the latest correspondence as more explicit. The earlier proposal had generated controversy.

Following the reading of the letter, Akpabio referred the request to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, for further legislative consideration. The committee is expected to examine financing sources, terms and implications and report back as soon as practicable.