President Bola Tinubu has sought approval from the National Assembly to secure a $7.7 billion foreign loan, worth about ₦10.79 trillion, to help fund Nigeria’s 2026 budget deficit.

The planned borrowing is part of the Federal Government’s financing strategy for the 2026 fiscal year, which is projected to have a deficit of ₦31.4 trillion.

Tinubu’s request was contained in a letter dated October 26, 2026, addressed to Senate President Godswill Akpabio. It was presented to lawmakers during Wednesday’s plenary.

Following the reading of the letter, Akpabio forwarded the proposal to the Senate Committee on Local and Foreign Debts for review and further legislative action.

According to the President, the 2026 Appropriation Act makes provision for ₦29.2 trillion in new borrowing to partly cover the anticipated budget gap.

The borrowing plan comprises ₦18.4 trillion in domestic loans and $7.7 billion in external financing, estimated at about ₦10.79 trillion based on the budget exchange rate of ₦1,400 per dollar.

Tinubu noted that the latest request covers the external borrowing portion already included in the approved budget.

“The 2026 Appropriation Act approved the sum of ₦29.2 trillion as new borrowings to part-finance the 2026 budget deficit of about ₦31.4 trillion,” the President stated.

He also referenced Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which mandate National Assembly approval for external borrowing.

Explaining how the funds would be raised, Tinubu said the government plans to explore various international financing options, with Eurobonds expected to take priority.

He said this route was preferred because Eurobond deals can be concluded faster and could potentially raise larger sums at relatively favourable costs.

“Emphasis will be on the issuance of Eurobonds, which is typically faster to conclude. Additionally, a larger amount can be raised through Eurobonds at a relatively lower cost in respect to the terms and conditions,” the letter stated.