President Bola Tinubu has asked the National Assembly to approve a supplementary external borrowing plan worth $20.52 billion and €1.045 billion, equivalent to approximately $21.7 billion combined, to finance development projects across Nigeria during the 2026–2027 period.
The request, presented in a letter read by Senate President Godswill Akpabio during plenary on Tuesday, October 27, has renewed debate over the government’s reliance on foreign loans and the need to ensure that borrowed funds produce measurable benefits for Nigerians.
According to reports by Reuters and Premium Times, the proposed facilities amount to $20,517,755,901 and €1,045,083,643, with the Federal Government seeking legislative approval to proceed with the supplementary borrowing plan.
However, the National Assembly has not given final approval to the proposal. Akpabio referred the request to the Senate Committee on Local and Foreign Debts, alongside other relevant committees, for further examination and directed them to report back within one week.
The development comes as Nigeria continues to face substantial infrastructure needs, competing budgetary demands and concerns about the cost of servicing its existing public debt.
Tinubu External Borrowing Plan Targets Infrastructure and Economic Growth
Tinubu said the proposed borrowing would help the government address Nigeria’s infrastructure deficit while supporting economic growth, job creation and improvements in living standards.
The plan covers several sectors, including power, transportation, healthcare, education, agriculture, water supply and security, as well as employment generation and financial management reforms. The President also stated that most of the proposed projects and programmes would extend across the 36 states and the Federal Capital Territory.
According to the President, the government selected the projects after technical and economic evaluations designed to assess their potential contributions to national development.
The administration expects the investments to stimulate economic activities, encourage entrepreneurship, improve food security and create opportunities for skills acquisition. It also argues that external financing could help bridge the funding gap created by the country’s extensive infrastructure requirements.
Tinubu has urged lawmakers to consider the proposal promptly, maintaining that access to the funds would support the timely implementation of government projects and programmes.
Nevertheless, the request has raised questions about the specific projects that would receive the money, the terms attached to the facilities and the government’s capacity to meet future repayment obligations.
The information presented in the reported presidential request did not provide a complete project-by-project breakdown, individual financing conditions or precise allocations for every beneficiary sector.
These details will be important during legislative scrutiny because the overall size of a borrowing proposal does not, by itself, establish whether the financing represents good value for the country.
Opposition and Lawmakers Demand Greater Accountability
The Tinubu external borrowing plan has attracted criticism from opposition figures and some lawmakers, particularly over the government’s handling of previous borrowing approvals and the transparency of its spending decisions.
Former Vice-President Atiku Abubakar has called on the National Assembly to withhold approval until the Federal Government publishes detailed information about the projects, contracts, costs, contractors, loan conditions and repayment obligations associated with the proposed facilities.
Atiku has questioned whether lawmakers should approve borrowing of this scale without a comprehensive breakdown of how the funds would be used. His comments reflect wider opposition concerns about public accountability and the financial responsibilities that future administrations and taxpayers may inherit.
Separately, Senator Victor Umeh questioned the government’s record on previous borrowing, asking why some contractors handling capital projects were reportedly still awaiting payment despite earlier loan approvals.
Umeh’s concerns highlight the need for lawmakers to examine not only the proposed financing but also the implementation of previously approved projects and the extent to which earlier borrowing has delivered its intended results.
However, these criticisms do not establish that the proposed funds would be misused. The government’s stated position is that additional financing is necessary to address infrastructure gaps and support development priorities.
The National Assembly’s review will therefore be important in determining the proposal’s scope and the conditions that should govern any approval.
Nigeria’s borrowing decisions also carry implications beyond the immediate availability of project funding. Interest rates, repayment schedules, currency movements and the economic returns generated by financed projects can all influence the long-term cost of external debt.
The Federal Government will need to demonstrate that the expected benefits justify the financial commitments and that the proposed projects can be implemented effectively.
For now, the supplementary external borrowing plan remains under legislative consideration, with the relevant Senate committees expected to examine the request before reporting their findings.
The outcome will determine the next stage of the approval process, while further disclosure could help Nigerians assess how the proposed loans would support development and affect the country’s future finances.