Nigeria: Tinubu requests $7.7 billion in external borrowing and abandons the $20.3 billion plan

Nigerian President Bola Ahmed Tinubu is asking the Senate for authorization to borrow $7.7 billion from abroad, equivalent to 10.79 trillion naira at the budget rate of 1,409 naira to the dollar. His letter, dated October 26, 2026, was read during a plenary session by Senate President Godswill Akpabio, reports the Abuja-based daily Leadership.

This request replaces a much larger one. "This letter cancels the previous request for $20.3 billion," said Mr. Akpabio, who considers the new request more explicit than the previous one.

What the money is for

The loan is intended to finance part of the 2026 budget deficit, estimated at approximately 31.4 trillion naira. The 2026 Finance Act had authorized 29.2 trillion naira in new borrowing, divided between 18.4 trillion naira raised on the domestic market and 10.79 trillion naira from external sources. The priority sectors announced are defense and security, transport, agriculture, energy, education, and health. No specific amounts per sector have been made public.

Eurobonds, and interest rates still unknown

In his letter, the Head of State lists the avenues being considered: concessional and commercial loans from multilateral and bilateral institutions, the International Monetary Fund, bridge financing, direct loans from international financial institutions, and the issuance of Eurobonds. All would be explored in parallel, with an emphasis on Eurobonds, which are "generally faster to conclude," he writes. Interest rates, repayment periods, and other terms will depend, he specifies, on market conditions at the time of pricing.

The president puts forward another argument: the funds will be received by the Central Bank of Nigeria on behalf of the federal government, which, according to him, will increase foreign exchange reserves and support the naira. The request is based on sections 21(1) and 27(1) of the 2003 Debt Management Office Act, which requires all external borrowing to be submitted to the National Assembly by way of a resolution.

The ball is in the senators' court

Tinubu also requests that the Minister of Finance and Coordinating Minister of the Economy, in conjunction with the Debt Management Office, be empowered to take all necessary steps to implement this debt. Mr. Akpabio referred the file to the Senate Committee on Local and Foreign Debts, asking it to submit its report as soon as possible. The Senate will have to examine it before making a decision.

No critical voices were cited in the Leadership report. The fundamental debate therefore remains before the Nigerian elected officials: that of the final cost of this loan for taxpayers, and how much of the 10.79 trillion naira will actually go to hospitals, schools, and electricity rather than to servicing already contracted debt.