President Tinubu seeks Senate approval for a revised $7.7 billion external loan to fund the 2026 budget deficit, prompting Atiku’s criticism.
President Bola Tinubu has revised the federal government’s external borrowing plan for 2026, seeking the Senate’s approval of a fresh $7.707 billion (N10.79 trillion) loan to finance part of the budget deficit, replacing an earlier request for $20.52 billion and €1.045 billion.
The Senate President, Godswill Akpabio, disclosed this on Wednesday while reading a fresh letter from Tinubu during plenary, explaining that the new request effectively superseded the previous borrowing proposal submitted to the National Assembly.
Reacting to the development, former Vice President and the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar condemned President Tinubu’s request to borrow $7.7 billion.
The revised request, dated October 26, 2026, specifically seeks legislative authorisation for the federal government to raise the equivalent of N10.79 trillion in external financing as part of the funding arrangements for the 2026 Appropriation Act.
The President explained that the proposed external borrowing formed part of the N29.2 trillion new borrowing provision in the 2026 budget, designed to finance the country’s estimated N31.4 trillion budget deficit.
Under the revised financing arrangement, the federal government plans to raise N10.79 trillion externally, while N18.4 trillion would be sourced from the domestic debt market.
Tinubu said the external financing would be mobilised through several channels, including Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities and bridge financing arrangements.
However, he indicated that the government would place greater emphasis on Eurobond issuance because of its relatively faster processing time and capacity to generate substantial funds at comparatively lower costs.
The President said, “All the options will be pursued simultaneously, considering the costs and related benefits to the country and the time required to access the funds.
“In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude. Additionally, a large amount can be raised through Eurobonds at a relatively lower cost.”
He explained that the final terms and conditions of the proposed facilities would be determined by prevailing market conditions when the loans were being priced.
According to him, the Federal Ministry of Finance and the Debt Management Office (DMO) would work together to ensure that the country secures the most favourable borrowing terms.
Tinubu said the proposed funds would finance projects and programmescaptured in the 2026 Appropriation Act, particularly in critical sectors considered essential to economic growth and national development.
He identified defence and security, transportation, agriculture, power, education and healthcare as priority areas expected to benefit from the proposed external financing.
The President explained that the borrowing was necessary to sustain the implementation of the administration’s economic reform agenda and consolidate the gains recorded over the past few years.
“The new external borrowings are required to implement the items, programmes and projects in the 2026 Appropriation Act, which are designed to consolidate and strengthen the macroeconomic reforms and gains recorded by this administration in the past few years,” he said.
Beyond financing budgetary obligations, Tinubu said the proposed borrowing would also strengthen Nigeria’s external reserves and provide additional support for exchange-rate stability.
He explained that the foreign currency proceeds would be received by the Central Bank of Nigeria on behalf of the federal government, thereby increasing the country’s foreign reserves.
“It is also important to add that the process will increase the accretion to the external reserves, since the funds will be received by the Central Bank of Nigeria on behalf of the federal government, thereby supporting the naira exchange rate,” he stated.
The President anchored his request on Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which provide for legislative approval of external borrowing and empower the National Assembly to approve the terms and conditions of such facilities.
He specifically asked the Senate to approve the proposed N10.79 trillion borrowing, equivalent to $7.707 billion, based on the 2026 budget exchange rate of N1,400 to the dollar.
Tinubu also sought the Senate’s authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the DMO, to take the necessary steps to implement the borrowing arrangement.
Explaining the significance of the revised communication, Akpabio said the fresh request effectively cancelled the earlier proposal read by him from Tinubu on October 27, seeking approval for $20.52 billion and €1.045 billion in external borrowing.
He said the latest letter was more explicit about the government’s financing requirements and provided greater flexibility in sourcing funds from different international markets and institutions.
Akpabio said, “I believe this letter effectively cancels the earlier request that was sent for $20-something billion. But this is much more explicit.”
The Senate President explained that the revised arrangement recognised that the federal government would not necessarily obtain all the required funds from a single source, but would explore different financing opportunities to secure competitive terms.
He said, “This also takes cognisance of the fact that the borrowing is not going to take effect from only one location. So, we have to go out there and search for the best terms, what we may call a willing-seller, willing-buyer approach.”
Following the presentation of the presidential communication, Akpabio referred the request to the Senate Committee on Local and Foreign Debts for further legislative scrutiny.
He asked the committee to examine the proposed borrowing arrangements and report back to the Senate for consideration, “as soon as practicable.”
The revised borrowing request comes amid continuing concerns over Nigeria’s rising public debt obligations, the growing cost of debt servicing and the government’s dependence on borrowing to finance budgetary commitments.
With the 2026 budget providing for substantial new borrowing, the Senate’s consideration of Tinubu’s request is expected to focus not only on the proposed financing arrangements but also on the country’s capacity to manage additional external debt and ensure that borrowed funds are deployed for the purposes stated by the government.
Atiku Condemns N10.79 Trillion Request
However, Atiku condemned the move, questioning: “‘’What is the problem with this government? Why is President Tinubu making borrowing requests on behalf of Nigeria week in, week out? Barely days after an external borrowing proposal of $20.52 billion and €1.045 billion was presented to the National Assembly, another request for $7.7 billion is now before the Senate. Nigerians cannot be expected to treat this relentless borrowing as routine paperwork.
In a statement by the ADC Director of Strategic Communications, PhrankShauib, the presidential candidate stated: ‘’Every new foreign loan is a bill Nigerians will eventually have to pay. This government cannot keep presenting borrowing as a substitute for sound economic management while families and businesses carry the cost of its failures.’’
He said that the latest request raises urgent questions, asking ‘’Which specific projects will the APC led Federal Government use the money for? How much will each project cost? What are the repayment schedule, interest rate and other conditions?’’
Atiku said the President’s own letter to the senate did not state the final terms of the fresh loan request and whether it will depend on market conditions when the borrowing is priced.
The former vice president said tNigerians should not be asked to accept a loan before they know what it will cost the country.
He further tasked the Senate to scrutinise this proposal line by line. insisting that ‘’It must demand a full project list, clear funding allocations, the proposed loan terms and a credible repayment plan before considering approval., stating ‘’No government should receive a blank cheque to contract foreign debt in the name of budget implementation.’;
Atiku expressed worries that ‘’With President Tinubu’s tenure approaching its end, he must not bind Nigerians and future administrations to fresh debt without full disclosure and rigorous scrutiny. We call on international agencies and lenders to stop extending new loans to this administration until it provides transparent terms, a credible repayment plan and clear evidence of how previous borrowings have benefited Nigerians.
‘’Tinubu removed subsidies on petroleum products but has emerged as the highest borrowing government in Nigeria’s record history.
‘’Conversely, this is one government that has unleashed the worst cost of living crisis on Nigerians where people struggle to afford a decent living and businesses are being forced to shut down.’’, Atiku stated.
Atiku further said despite these loans ‘’It is also the government with the record infrastructure investment deficit in Nigeria:
‘’So the question is: what is Tinubu using his loans to finance specifically?
‘’Nigerians are hungry and angry. Public infrastructure are limited; social welfare intervention is nonexistent. Yet Nigeria is owing massively under Tinubu.’’
However, Atiku said that he has a different plan to make sure that Nigeria does not continue in this slide to poverty and debt.
Atiku said that his plan is to return social welfare to the Nigerian people through the introduction of production based subsidy on petroleum products
‘’Nigeria cannot borrow its way out of every budget shortfall. The National Assembly must remember that it is accountable to Nigerians, not merely to the executive. Before approving another trillion-naira burden, it must make the government answer the questions Nigerians are asking.’’, the former vice president
