Tinubu Requests $7.7 Billion External Loan for 2026 Budget

President Bola Tinubu has requested Senate approval for $7.707 billion in external borrowing to part-finance a projected 2026 budget deficit of 31.4 trillion naira. The request, detailed in a letter dated October 26 and presented to the Senate on November 4, supersedes a previous proposal for $20.52 billion and 1.045 billion euros. The external loan forms part of a larger 29.2 trillion naira borrowing plan, with the remaining balance to be sourced domestically.

The administration intends to prioritize Eurobond issuance to raise the capital quickly, though it also considers IMF facilities and loans from multilateral and bilateral institutions. The funds are earmarked for priority sectors including defense, security, transportation, agriculture, power, education, and healthcare. Proceeds would be managed by the Central Bank of Nigeria to increase external reserves and stabilize the naira.

Senate President Godswill Akpabio referred the request to the Senate Committee on Local and Foreign Debts for scrutiny. Meanwhile, former Vice President Atiku Abubakar urged the Senate to reject the loan, arguing that the government is using debt as a substitute for sound economic management during a cost-of-living crisis. Abubakar called on international lenders to suspend fresh loans until the government provides transparent repayment plans and a comprehensive project list, stating that no government should receive a "blank cheque" for foreign debt.