By Adedapo Adesanya
President Bola Tinubu has asked the House of Representatives to approve the implementation of the N10.79 trillion external borrowing component of the 2026 Appropriation Act.
In a letter addressed to the Speaker of the House, Mr Tajideen Abbas, the President said the request was to secure the statutory authorisation required to implement an external borrowing plan already approved by the National Assembly and provided for in the 2026 budget.
The President clarified that the request did not constitute a fresh borrowing plan, noting that the amount was part of the previously approved financing arrangements for the budget deficit.
According to the letter, the proposed external borrowing of N10.79 trillion, equivalent to $7.707 billion at the budget exchange rate of N1,400 to the Dollar, forms part of the total approved new borrowing of N29.218 trillion.
The borrowing plan comprises N18.28 trillion in domestic borrowing and N10.79 trillion in external borrowing to finance the 2026 budget deficit.
He made the request to the Senate last week.
President Tinubu said the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003, which provide for National Assembly approval of the terms and conditions of external loans.
He explained that the Federal Government intended to explore available borrowing options simultaneously, taking into account their costs, benefits and the time required to access the funds.
However, he said greater emphasis would be placed on Eurobond issuance because it could be concluded faster and raise larger amounts at relatively lower costs.
The President noted that the terms of the proposed Eurobond issuance would be determined by prevailing market conditions at the point of pricing.
He added that the Ministry of Finance and the Debt Management Office would work together to secure the most favourable borrowing terms for the country.
President Tinubu said the proceeds would finance projects and priority interventions under the 2026 Appropriation Act, particularly in defence and security, transportation, agriculture, power, education and healthcare.
He added that the borrowing would support the administration’s economic reforms, strengthen economic stability and sustain recent gains.
The President also said the foreign currency proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government and contribute to the country’s external reserves, supporting exchange-rate stability.
He consequently asked the House to adopt a resolution authorising the Federal Government to implement the N10.79 trillion external borrowing plan through one or more funding sources, including multilateral and bilateral institutions, the International Monetary Fund, bridge financing arrangements and direct borrowing from international institutions, with priority given to Eurobond issuance.
He also sought authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office, to take necessary steps to implement the proposed resolution.
