The Senate has referred President Bola Tinubu’s request for a 7.7-billion-dollar external loan, equivalent to 10.79 trillion naira, to its Committee on Local and Foreign Debts for scrutiny. The request, contained in a letter dated October 26, 2026, forms part of the Federal Government’s 2026 financing plan to address a projected budget deficit of 31.4 trillion naira, with the President seeking approval to raise the funds through various channels, particularly Eurobond issuance.
Tinubu said the proposed borrowing would support critical sectors, including defence, transportation, agriculture, power, education and healthcare, while contributing to the country’s foreign reserves. He added that the final interest rates and repayment terms would depend on prevailing market conditions, assuring lawmakers that the Finance Ministry and Debt Management Office would negotiate favourable conditions.
Senate President Godswill Akpabio stressed the need to secure beneficial loan terms and carefully examine the country’s repayment obligations before accepting any financing arrangement. He subsequently directed the committee to review the proposal and report back as soon as practicable, ahead of the Senate’s final decision.
