President Bola Tinubu has formally requested the statutory authorization of the House of Representatives to implement the N10.79 trillion (approx. $7.70 billion) external borrowing plan approved under the 2026 Appropriation Act. The official communication from the President was read during the plenary session by the Speaker of the House, Rt. Hon. Tajudeen Abbas
According to the communication, the requested external financing forms a vital component of the strategy to part-finance the 2026 budget deficit. President Tinubu recalled that the 2026 Appropriation Act authorized a total of N29.2 trillion in new borrowings to help bridge a budget deficit of approximately N31.4 trillion. This overall borrowing framework was subdivided into new domestic borrowing of N18.4 trillion and external borrowing amounting to N10.79 trillion ($7.70 billion at the budget exchange rate of N1,400 to the dollar).
The President noted that the funds will be deployed toward executing critical capital projects and infrastructural interventions laid out in the 2026 budget, ensuring the continuation of macro-economic stability and growth. The N10.79 trillion external loan is expected to be sourced through a diversified mix of windows, which include:
- Eurobond issuances (subject to prevailing market conditions).
- Concessional and commercial financing from multilateral and bilateral institutions.
- Facilities from the International Monetary Fund (IMF)
- Bridge financing arrangements and direct borrowing from international financial institutions
Addressing the rationale behind the fiscal strategy, the administration emphasized that sustainable financing is critical for bridging Nigeria’s infrastructure deficit and driving long-term economic expansion. The President stressed that the ultimate measure of success will be the successful delivery, execution, and value-for-money of the projects tied to the fiscal plan.
Leadership of the House clarified that this communication seeks the specific legal authorization required to execute the external component already integrated into the passed 2026 budget framework, and runs concurrently with standard legislative oversight.
Following the reading of the letter, Speaker Tajudeen Abbas referred the executive request to the joint committees on Aids, Loans and Debt Management, and Finance for detailed legislative scrutiny and subsequent reporting back to the House.
