Tinubu Seeks Senate Approval for $20.52bn, €1.05bn External Loans

President Bola Tinubu has asked the Senate to approve a fresh external borrowing plan intended to finance key government projects and address funding gaps in Nigeria’s 2026–2027 fiscal programme. The request was conveyed in a letter addressed to Senate President Godswill Akpabio and read during plenary on Tuesday, October 27. In the letter, Tinubu submitted the Federal Government’s 2026–2027 Supplementary External Borrowing Plan for consideration and approval by the National Assembly. The President said the proposed loans would support investment in critical sectors, including infrastructure, power, transportation, healthcare, security, agriculture, water supply and education. He also identified food security, employment generation and poverty reduction as priorities the proposed borrowing would help address. Tinubu explained that the projects and programmes under the plan had been selected following technical and economic assessments, with consideration given to their potential contributions to Nigeria’s socioeconomic development. He argued that external borrowing had become necessary because of the substantial financial resources required to address the country’s infrastructure deficit. The President urged lawmakers to consider the request promptly, saying early approval would facilitate the timely release of funds and implementation of the proposed projects. Responding to the letter, Akpabio indicated that elements of the borrowing plan had featured in earlier budgetary and borrowing arrangements, although he expressed uncertainty about the precise period covered by previous approvals. He said the request would be referred to the Senate Committee on Local and Foreign Debts for examination, potentially in collaboration with the committees on Appropriations and Finance. The proposed borrowing comes amid continued debate over Nigeria’s reliance on external loans to finance public expenditure and infrastructure development. While the Federal Government maintains that borrowing can help address critical funding needs and support economic growth, concerns remain over rising public debt, repayment obligations and the need to ensure that borrowed funds produce measurable benefits. The Senate’s consideration of the latest request will determine the next stage of the legislative process.