Tinubu Requests $7.7 Billion Loan for 2026 Budget Deficit

President Bola Ahmed Tinubu has formally requested the National Assembly's approval for a fresh external loan of $7.7 billion (approximately N10.79 trillion) to help finance Nigeria's N31.4 trillion budget deficit for the 2026 fiscal year. This request follows a prior appeal for a $20 billion external loan and comes amid rising concerns regarding Nigeria's debt, projected to exceed N200 trillion by the end of 2026.

The request, dated October 26, 2026, was presented to the Senate and referred to the Committee on Local and Foreign Debts for further consideration. The proposed borrowing aligns with the Debt Management Office (Establishment, etc.) Act, 2003, requiring legislative approval for external debt transactions.

Tinubu indicated that the government would prioritize Eurobond issuance for this borrowing due to its speed and cost-effectiveness. The funds are intended to support critical infrastructure and developmental programs in areas such as defense, transportation, agriculture, power, education, and healthcare.