Tinubu Seeks Approval for $20.52bn, €1.05bn External Borrowing Plan
President Bola Tinubu has asked the National Assembly to approve a supplementary external borrowing plan worth $20.52 billion and €1.045 billion to finance infrastructure and other development projects across Nigeria.
The request, covering the 2026–2027 period, was conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday.
The proposed facilities amount to $20,517,755,901 and €1,045,083,643, respectively.
Tinubu said the financing would support projects in infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms.
He argued that additional external borrowing was necessary to address Nigeria’s infrastructure deficit and close funding gaps affecting the implementation of development projects.
In the letter, the President urged lawmakers to consider the proposal promptly to facilitate the implementation of the planned projects.
He said the projects had been selected following technical and economic evaluations, with consideration given to their expected contributions to Nigeria’s socioeconomic development.
According to him, the proposed investments are also intended to create jobs, promote skills acquisition and entrepreneurship, reduce poverty and strengthen food security.
Tinubu added that most of the projects would be implemented across the 36 states and the Federal Capital Territory.
The President identified power, transportation and healthcare as among the critical sectors expected to benefit from the proposed financing.
Senate begins consideration
Following the presentation of the President’s request, Akpabio referred it to the Senate Committee on Local and Foreign Debts for examination.
The committee is expected to work with other relevant committees, including those on Appropriations and Finance, where necessary.
The Senate leadership directed the committee to report back within one week.
Akpabio also indicated that aspects of the borrowing plan had featured in previous government budgetary and borrowing arrangements, although he expressed uncertainty about the precise period covered by earlier approvals.
The relationship between the new request and any previously approved borrowing arrangements is expected to be an important issue for legislative scrutiny.
Loan details yet to be fully established
The proposed borrowing plan covers several sectors, but the information presented during the Senate proceedings did not provide a complete project-by-project breakdown of the facilities, individual financing terms or the amount allocated to each sector.
Those details will be important in assessing the proposed borrowing, including its repayment obligations and the projects expected to benefit from the funds.
The request also requires careful examination to establish whether any components overlap with previously approved borrowing plans.
The proposed facilities have not yet received final approval through the process described in the Senate proceedings.
The committee’s review is expected to inform the National Assembly’s next steps on the request.
Until the necessary approvals are obtained and the financing arrangements are finalised, the proposed amounts should not be treated as loans already disbursed to the Federal Government.
