JUST IN: Tinubu seeks Senate approval for $20.52bn, €1.05bn external loans

President Bola Tinubu has asked the Senate to approve the Federal Government’s 2026–2027 Supplementary External Borrowing Plan, involving $20.52bn and €1.05bn, to finance infrastructure and development projects across the country.

The request, which was transmitted to the National Assembly, was read by the President of the Senate, Senator Godswill Akpabio, during Tuesday’s plenary.

In the letter, Tinubu urged the lawmakers to give the borrowing plan early consideration and approval, saying the funds would support critical projects and programmes in infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms.

The proposed borrowing amounts to $20,517,755,901 and €1,045,083,643, respectively.

The President said the external financing was necessary to address Nigeria’s infrastructure deficit and bridge the funding gap hampering the implementation of development projects.

He wrote, “I submit the attached Federal Government 2026–2027 Supplementary External Borrowing Plan for consideration and early approval of the National Assembly to ensure prompt implementation of our projects.”

Tinubu explained that the projects and programmes included in the plan had been selected following technical and economic evaluations, with emphasis on their expected contributions to the country’s socioeconomic development.

He said the initiatives were also intended to create jobs, promote skills acquisition and entrepreneurship, reduce poverty and strengthen food security.

“These initiatives aim to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty and enhance food security, all of which improve the livelihood of the Nigerian child,” he said.

According to the President, most of the projects would be implemented across the 36 states and the Federal Capital Territory, underscoring the nationwide scope of the proposed investments.

He argued that the scale of Nigeria’s infrastructure needs made additional financing necessary, while maintaining that external borrowing would help close the funding shortfall.

“In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue prudent external borrowings to close the financing shortfall,” Tinubu stated.

He added that the funds would primarily be channelled into critical infrastructure, particularly in the power, transportation and healthcare sectors.

The President urged the Senate leadership and the wider National Assembly to approve the plan promptly, arguing that timely approval would facilitate disbursements and accelerate project implementation.

However, the request is expected to undergo scrutiny by the relevant Senate committees, particularly against the backdrop of the government’s existing borrowing arrangements and the need to establish the precise scope of the proposed financing.

Reacting after the letter was read, Akpabio said the borrowing plan had featured in previous government borrowing and budgetary arrangements, although he expressed uncertainty about the exact period covered by the earlier approval.

“The borrowing plan is attached, but of course, this was even earlier approved in our budget, and also the external borrowing plan was approved as far back as 2025 to 2027, I think to 2028 or thereabout,” Akpabio said.

The Senate President said the new request would be referred to the Senate Committee on Local and Foreign Debts for consideration, with possible input from the Committees on Appropriations and Finance.

“However, this request will be looked at by the Committee on Local and Foreign Debts, probably in collaboration with Appropriations and Finance, but mainly by the Committee on Local and Foreign Debts,” he stated.

Akpabio also referenced Senator Haruna Manu in connection with the committee’s leadership.

The committee’s review is expected to examine the details of the proposed borrowing plan and its relationship with previously approved financing arrangements before the Senate determines the next legislative steps.

The request comes as the Federal Government seeks additional resources to finance infrastructure development and other programmes aimed at supporting economic growth and addressing longstanding deficits in public services.

The Senate’s consideration will be a key step in determining whether the proposed external financing receives the necessary legislative approval.