Nigeria's President Tinubu Withdraws $20.5bn Borrowing Plan

President Bola Tinubu has asked the National Assembly to approve fresh external borrowing of about $7.7 billion to part-finance the 2026 budget deficit, with Senate President Godswill Akpabio saying the request "effectively supersedes an earlier borrowing proposal of $20.3 billion".

Tinubu's request, contained in a letter dated October 26, 2026, was read by Akpabio during Wednesday's plenary.

The president is seeking approval for external borrowing of N10.79 trillion, equivalent to approximately $7.7 billion at the budget exchange rate of N1,409 to the dollar.

In the letter, Tinubu said the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003.

Section 21(1) provides that no external loan shall be approved or obtained by the Minister of Finance unless its terms and conditions are presented to the National Assembly and approved through a resolution.

Section 27(1) also empowers the National Assembly to approve, by resolution, standard terms and conditions for negotiating and accepting external loans and issuing guarantees.

Tinubu said the 2026 Appropriation Act approved N29.2 trillion in new borrowing to finance a budget deficit of approximately N31.4 trillion.

The borrowing requirement comprises N18.4 trillion in domestic loans and N10.79 trillion in external financing, with the latest request covering the external component.

Reacting to the letter, Akpabio said it effectively superseded the earlier request for $20.3 billion because the new proposal is more explicit about how the government intends to raise the funds.

"I believe this letter effectively supersedes the earlier request for 20.3 billion US dollars because the present request is more explicit. It also recognises that the borrowing will not necessarily come from one source," he said.

Akpabio said the government would have to explore available funding options and secure the most favourable terms.

"The government will have to explore the available options and secure the best possible terms under a willing-seller, willing-buyer arrangement," he said.

The Senate President referred the request to the Committee on Local and Foreign Debts to report back as soon as practicable.