By Oluwalemi Kindness
President Bola Tinubu has asked the House of Representatives to approve plans to raise $7.71bn (N10.79tn) in external loans to finance part of the Federal Government’s 2026 budget deficit.
In a letter read by Speaker Tajudeen Abbas during Wednesday’s plenary, Tinubu said the proposed borrowing was already captured in the 2026 Appropriation Act.
He said the external loan forms part of the N29.22tn new borrowing approved to finance the deficit, comprising N18.28tn in domestic loans and N10.79tn in external borrowing.
Tinubu said the request complied with the Debt Management Office Establishment Act, 2003, which requires National Assembly approval of the terms and conditions of external loans.
He said the government would pursue different borrowing options, but place greater emphasis on Eurobond issuance, which he described as a faster way to raise substantial funds at relatively lower cost.
The President added that the final terms of the Eurobond would depend on prevailing market conditions, while the Finance Ministry and the Debt Management Office would seek favourable borrowing terms.
According to him, the funds would support projects in defence and security, transportation, agriculture, power, education and health.
