The Senate has begun consideration of President Bola Tinubu’s request to secure a 7.7-billion-dollar external loan, equivalent to 10.79 trillion naira, referring the proposal to its Committee on Local and Foreign Debts for further scrutiny.

The proposed borrowing forms part of the Federal Government’s 2026 fiscal financing plan and is expected to contribute to funding the country’s projected 31.4-trillion-naira budget deficit.

In a letter dated October 26, 2026, addressed to the President of the Senate, Tinubu sought approval from the National Assembly to raise 10 trillion, 790 billion, 366 million, 835 thousand, 481 naira, equivalent to 7.7 billion dollars, at the budget exchange rate of 1,400 naira to the dollar.

The President explained that the proposed external borrowing represents the foreign component of the 29.2-trillion-naira new borrowing provision in the 2026 Appropriation Act.

According to him, the borrowing plan comprises 18.4 trillion naira in domestic loans and 10.79 trillion naira in external financing to partly fund the projected budget deficit.

Tinubu said the request was in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require external borrowing proposals to be submitted to and approved by the National Assembly.

He explained that the Federal Government would explore different financing options, taking into consideration borrowing costs, the benefits of each option and the time required to access the funds.

However, the President indicated that greater emphasis would be placed on Eurobond issuance because of its relatively faster processing time and capacity to generate substantial funds at competitive costs.

Other financing options outlined in the letter include concessional and commercial loans from multilateral and bilateral institutions, facilities from the International Monetary Fund, bridge financing arrangements, loan syndications and direct borrowing from international financial institutions.

Tinubu, however, noted that the final interest rates, repayment periods and other loan conditions would depend on prevailing market conditions at the time the financing arrangements are concluded.

He assured lawmakers that the Ministry of Finance and the Debt Management Office would work together to secure the most favourable borrowing terms for the country.