By Radarr Africa Business Desk
LAGOS, November 5 (Radarr Africa) – President Bola Tinubu has asked the Senate to approve N10.79 trillion (about $7.7 billion) in external borrowing to help fund part of the 2026 budget deficit, according to a report by Nairametrics citing the News Agency of Nigeria (NAN).
The request was made in a letter to Senate President Godswill Akpabio, which was read during plenary, the report said. Akpabio said the new letter superseded an earlier request for $20.3 billion and was more explicit about the government’s borrowing requirements.
The 2026 Appropriation Act provides for N29.2 trillion in new borrowing to finance a deficit of about N31.4 trillion. The borrowing plan has two parts: N18.4 trillion from domestic sources and N10.79 trillion from external sources.
According to the report, the letter lists several possible external funding routes: concessional and commercial loans from multilateral and bilateral lenders, the International Monetary Fund (IMF), bridge financing, direct borrowing from international financial institutions, and Eurobond issuance. The government will weigh costs, benefits and access timelines, but will place greater emphasis on Eurobond issuance “because of its relatively faster execution”, the report said. It added that Eurobonds can raise larger amounts at competitive costs.
Proceeds would go to priority projects in defence and security, transportation, agriculture, power, education and healthcare, the report said. Final interest rates and repayment tenures will depend on market conditions when the funds are priced, and the Federal Ministry of Finance and the Debt Management Office (DMO) will seek the most favourable terms.
Tinubu asked that the borrowing be based on the 2026 budget exchange rate of N1,409 to the dollar. The Central Bank of Nigeria (CBN) would receive the proceeds on behalf of the Federal Government, which would also support external reserves, according to the report.
Akpabio said the government would pursue the different funding sources on a “willing-seller, willing-buyer” basis to secure favourable terms. He referred the request to the Senate Committee on Local and Foreign Debt and asked it to report back as soon as practicable.
The request comes as public debt continues to climb. DMO data cited in the report show total public debt rose to N166.79 trillion as of June 30, 2026, from N159.35 trillion at the end of March 2026. Domestic debt stood at N91.59 trillion, or 54.91 per cent of the total. When Tinubu took office, on June 30, 2023, total public debt was N87.38 trillion.
External debt rose from $42.49 billion in December 2023 to $51.86 billion in December 2025, the DMO data show, while domestic debt rose from N59.1 trillion to N89.4 trillion over the same period.
The latest letter follows another borrowing request. In late October 2026, Tinubu sought Senate approval for a supplementary external borrowing plan of $20.52 billion and €1.05 billion covering 2026 and 2027, to fund infrastructure and development projects, Nairametrics reported in an earlier article. The report did not explain how that plan relates to the $20.3 billion figure Akpabio said had been superseded.
The report did not directly quote Tinubu’s letter, and its account of the letter is paraphrased. Nairametrics did not say when the Senate committee is expected to report back or when the plenary might vote on the request.
The Senate has not yet approved the request, which now rests with the Committee on Local and Foreign Debt. Any approval would allow the Federal Government to proceed with the external borrowing that, together with the N18.4 trillion in planned domestic borrowing, makes up the N29.2 trillion of new borrowing provided for in the 2026 Appropriation Act.
