President Bola Tinubu has asked the House of Representatives to approve the implementation of the Federal Government’s ₦10.79 trillion external borrowing component of the 2026 budget to finance projects and programmes across key sectors of the economy.

The request, contained in a letter addressed to Speaker of the House of Representatives, Tajudeen Abbas, seeks legislative approval to raise approximately $7.707 billion at the budget exchange rate of ₦1,400 to the dollar.

Tinubu explained that the request does not constitute a fresh borrowing proposal, as the amount had already been provided for under the 2026 Appropriation Act.

Rather, he said the approval was required to fulfil the statutory provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require the terms and conditions governing external loans to be presented to and approved by the National Assembly.

According to the President, Section 21(1) prohibits the Minister of Finance from obtaining or approving external loans without legislative approval of their terms and conditions, while Section 27(1) empowers the National Assembly to approve standard conditions for negotiating and accepting external loans and issuing guarantees.

Tinubu recalled that the 2026 Appropriation Act provided for ₦29.218 trillion in new borrowing to finance the budget deficit, comprising ₦18.28 trillion in domestic borrowing and ₦10.79 trillion in external financing.

He said the Federal Government intends to explore different financing options simultaneously, taking into consideration their respective costs, benefits and the time required to access the funds.

The proposed sources include concessional and commercial loans from multilateral and bilateral institutions, facilities from the International Monetary Fund, bridge financing, direct borrowing from international financial institutions and Eurobond issuance.

However, Tinubu indicated that the government would place greater emphasis on Eurobond issuance, which he described as a potentially faster option for raising substantial funds at relatively competitive costs.

He added that the final borrowing terms, including interest rates and repayment periods, would depend on prevailing market conditions when the funds are raised.

The President said the external borrowing would finance projects and programmes captured in the 2026 budget, particularly in defence and security, transportation, agriculture, power, education and healthcare.

He also argued that the proceeds would support Nigeria’s external reserves because the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government, potentially providing support for the stability of the naira.

In his proposed resolution, Tinubu asked the House to authorise the Federal Government to implement the ₦10.79 trillion external borrowing through one or a combination of the identified financing sources.

The request follows an earlier borrowing proposal of about $20.5 billion submitted by the President, which was subsequently superseded by the revised $7.7 billion request.

The Senate had received the request on November 4, with Senate President Godswill Akpabio referring it to the Committee on Local and Foreign Debts for further legislative consideration.

The House of Representatives is now being asked to provide the necessary approval for the implementation of the external borrowing component of the 2026 budget.