President Bola Tinubu has formally asked the House of Representatives to grant statutory approval for the N10.79 trillion external borrowing component contained in the 2026 Appropriation Act.
In a letter read on the floor of the House by Speaker Tajudeen Abbas, the President said the financing would partly cover the 2026 budget deficit and support the implementation of projects captured in the appropriation law.
The 2026 Appropriation Act provides for N29.2 trillion in new borrowings to help finance a budget deficit estimated at N31.4 trillion. That requirement is split into N18.4 trillion in new domestic borrowing and N10.79 trillion in external borrowing, the letter stated.
The external component is equivalent to $7.70 billion at the budget exchange rate of N1,400 to the dollar. According to the President, the funds would be raised through Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, and International Monetary Fund facilities. Bridge financing, loan syndications and direct borrowing from international financial institutions were also listed as possible channels.
The letter indicated that Eurobond issuance would receive priority because it is generally faster to conclude, while all available financing options would be pursued simultaneously based on their costs, relative benefits and the time required to access the funds.
Proceeds are expected to be channelled to critical capital projects across key sectors, including:
- infrastructure - defence and security - agriculture - healthcare - power - transportation - education
The President also sought authorisation for the Minister of Finance and Coordinating Minister of the Economy, working with the Debt Management Office, to take the necessary steps to implement the borrowing arrangement once approved. He urged prompt legislative approval to enable the executive to carry out capital programmes and infrastructure projects in the 2026 budget.
After the letter was read, the House referred the request to its joint committees on Aids, Loans and Debt Management, and Finance for further legislative action.
