President Bola Tinubu has asked the Senate to approve $7.7 billion in external borrowing to help finance the 2026 budget deficit.
Senate President Godswill Akpabio read the request during Wednesday’s plenary. In the letter, Tinubu said the financing would support projects and programmes provided for in the 2026 Appropriation Act.
The proposed borrowing is equivalent to about N10.79 trillion at the budget exchange rate of N1,400 to the dollar. Tinubu listed transport, agriculture, power, education, health and defence among the sectors to benefit.
The president said the government would consider several financing options, with an emphasis on Eurobonds because they could be arranged more quickly and raise larger amounts.
Interest rates, repayment periods and other final terms would be determined when the bonds are priced, subject to market conditions. Tinubu said the finance ministry and the Debt Management Office would seek the best available terms.
Akpabio said the request replaced the earlier external borrowing proposal submitted last week. That plan sought $20.52 billion and about €1.05 billion for development projects.
The latest request has been referred to the Senate Committee on Local and Foreign Debts for further consideration; it has not yet received Senate approval.
Sources: Punch; Channels Television
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