Get Guardian on Google…President favours Eurobond issuance, says multiple funding sources will be explored
President Bola Tinubu has asked the National Assembly to approve fresh external borrowing of $7.7 billion (N10.79 trillion) to finance projects under the 2026 Appropriation Act.
The request, read by Senate President Godswill Akpabio during plenary, proposes raising the funds through Eurobonds and other international financing sources.
Akpabio indicated that the latest request effectively superseded an earlier proposal seeking approval for more than $20 billion in external borrowing.
“I believe this letter effectively cancels the earlier request that was sent for $20-something billion. This is much more explicit,” he said.
In the letter, Tinubu explained that the proposed external borrowing formed part of the N29.2 trillion borrowing provision in the 2026 budget.
The amount comprises N18.4 trillion in domestic borrowing and N10.79 trillion in external borrowing.
The President said the funds would help finance projects in defence and security, transportation, agriculture, power, education and healthcare.
He also argued that the borrowing would strengthen Nigeria’s external reserves and support the naira.
Tinubu said the government would explore different financing options, including multilateral and bilateral institutions, the International Monetary Fund, bridge financing and Eurobond issuance.
However, he directed that greater emphasis be placed on Eurobonds because of the speed of accessing funds and the possibility of raising larger amounts.
The President acknowledged that the final interest rates and repayment periods would depend on prevailing international market conditions.
He assured the Senate that the Finance Ministry and Debt Management Office would work to secure the best possible borrowing terms.
Akpabio subsequently referred the request to the Senate Committee on Local and Foreign Debts for consideration and a report as soon as practicable.
The request is anchored on Sections 21(1) and 27(1) of the Debt Management Office Act, 2003, which provide for National Assembly approval of external borrowing.
