President Bola Tinubu has submitted a fresh Tinubu $7.7bn foreign loan proposal to the National Assembly, seeking legislative approval to raise approximately $7.7 billion from international lenders to finance part of Nigeria’s 2026 budget. The request, which amounts to about ₦10.79 trillion at the budget exchange rate of ₦1,400 to the dollar, replaces an earlier external borrowing proposal worth $20.52 billion and €1.045 billion.
The President’s latest request came in a letter dated October 26, 2026, which Senate President Godswill Akpabio presented during Wednesday’s plenary session. Following the presentation, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debts for further examination and directed the committee to report back as soon as possible.
The revised borrowing plan provides additional details about the government’s intended funding sources, the projects that would receive financing and the conditions under which Nigeria hopes to secure the funds.
Tinubu $7.7bn Foreign Loan to Support 2026 Budget Projects
According to the President, the proposed external borrowing will help implement projects and programmes contained in the 2026 Appropriation Act, with priority areas including infrastructure, defence and security, agriculture, transportation, electricity, education and healthcare.
Tinubu explained that the government intends to explore different financing arrangements simultaneously rather than depend on a single source of international funding. These options include Eurobond issuance, commercial loans, concessional financing from multilateral and bilateral institutions, and other available external borrowing facilities.
However, the President indicated that the government would place greater emphasis on Eurobonds because they generally take less time to conclude and can provide access to substantial amounts of foreign currency.
He also explained that the final interest rates, repayment periods and other conditions would depend on the financing option selected and the prevailing market situation when the transactions reach the pricing stage.
The Federal Ministry of Finance and the Debt Management Office will coordinate the borrowing process and negotiate with prospective lenders to secure terms that the government considers favourable.
Tinubu further stated that the foreign currency proceeds would go through the Central Bank of Nigeria, which would receive the funds on behalf of the Federal Government. According to him, the arrangement could increase Nigeria’s external reserves and provide additional support for the naira.
Senate Examines Revised External Borrowing Proposal
The Tinubu $7.7bn foreign loan request also changes the direction of an earlier borrowing proposal submitted to the National Assembly. The previous plan sought approval to process $20.52 billion and €1.045 billion in external loans under the government’s 2026–2027 Supplementary External Borrowing Plan.
The latest submission effectively replaces that proposal, according to Akpabio, who described the new communication as more explicit about the government’s financing requirements and the different options available for raising the funds.
Under the 2026 Appropriation Act, the Federal Government has a borrowing provision of ₦29.2 trillion to partly finance the projected budget deficit. The amount comprises ₦18.4 trillion in domestic borrowing and approximately ₦10.79 trillion in external financing.
The proposed $7.7 billion facility represents the external component of this borrowing arrangement rather than an entirely separate borrowing provision added to the approved budget plan.
The Senate committee will examine the request, including the proposed financing arrangements and the government’s plans for accessing the international debt market, before lawmakers reach a final decision.
Nigeria’s borrowing laws also require the National Assembly to approve external loan arrangements before the Federal Government can proceed with them. Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, provide the relevant legislative framework for external borrowing approvals.
Nigeria’s Rising Debt Raises Questions Over Repayment
The fresh Tinubu $7.7bn foreign loan proposal comes amid continued discussions about Nigeria’s public debt, government revenue and the increasing amount allocated to debt servicing.
Although borrowing remains one of the government’s financing options for infrastructure and development projects, the cost of obtaining foreign loans and the ability to repay them remain important considerations.
External borrowing also exposes the country to exchange-rate movements, particularly when the government raises funds in foreign currencies but generates a significant portion of its revenue in naira. Changes in the exchange rate can increase the naira value of outstanding foreign debt and make repayment more expensive.
The government maintains that the proposed financing will support priority projects, strengthen economic activities and sustain ongoing reforms. However, the effectiveness of the borrowing plan will depend partly on how efficiently the funds are deployed and whether the projects generate sufficient economic benefits.
For now, the $7.7 billion request remains subject to legislative scrutiny. The Senate’s decision will determine whether the Federal Government can proceed with the proposed external borrowing and begin negotiations to secure the funds for its 2026 budget commitments.
