President Bola Tinubu has asked the House of Representatives to approve the implementation of the N10.79 trillion external borrowing component of the 2026 Appropriation Act to help finance the Federal Government’s budget deficit.
The request, contained in a letter addressed to Speaker Abbas Tajudeen, was read during plenary on Wednesday. Tinubu sought authorisation to raise $7.71 billion at the budget exchange rate of N1,400 to the dollar.
The President said the request was in line with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which require the terms and conditions of external loans to be presented to and approved by the National Assembly.
He explained that the proposed external borrowing was already captured in the 2026 Appropriation Act as part of the N29.22 trillion approved new borrowing to finance the budget deficit.
The total borrowing comprises N18.28 trillion in domestic loans and N10.79 trillion in external financing.
In the letter, Tinubu said the government would explore different borrowing options simultaneously, considering their costs and the time required to access the funds.
He, however, indicated that greater emphasis would be placed on Eurobond issuance, describing it as a relatively faster option for raising substantial funds.
The President added that the final terms and conditions of the Eurobond issuance would depend on prevailing international market conditions, assuring that the Ministry of Finance and the DMO would seek the most favourable borrowing terms.
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Tinubu said the external loans would finance projects and programmes under the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and health.
He also stated that the funds would help strengthen Nigeria’s external reserves and support the naira, noting that the proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government.
The President requested the House’s authorisation to raise the funds through multilateral and bilateral institutions, conventional and commercial lending windows, the International Monetary Fund, bridge financing facilities and Eurobond issuance.
He also sought approval for the Minister of Finance and Coordinating Minister of the Economy, working with the DMO, to take the necessary steps to implement the borrowing arrangement.
Reacting after reading the letter, Speaker Abbas clarified that Tinubu was not seeking approval for a fresh borrowing plan, as the N10.79 trillion external borrowing had already been approved by the National Assembly and provided for in the 2026 Appropriation Act.
Abbas explained that the President was seeking parliamentary approval for the terms and conditions governing the external loans, as required by the DMO Act.
He cited Sections 21(1) and 27(1) of the Act as the legal provisions requiring the National Assembly to approve the terms and conditions of external borrowing before implementation.
The Speaker further clarified that the request was separate from another borrowing proposal by the President, which would be considered independently on its own merits.
He stressed that the current request was strictly for the statutory authorisation needed to implement the external borrowing already provided for in the 2026 budget.
