Tinubu Seeks Senate Approval for $20.5bn, €1.05bn Foreign 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 Nigeria.

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

In the letter, Tinubu urged lawmakers to give the proposal early consideration and approval, citing the need to address the country’s infrastructure deficit and bridge funding gaps affecting critical development projects.

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

According to the President, the funds would support projects and programmes across key sectors, including power, transportation, healthcare, agriculture, education, water supply, security, employment generation and financial management reforms.

“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 wrote.

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He explained that the projects had been selected following technical and economic assessments, with priority given to initiatives expected to contribute significantly to Nigeria’s socioeconomic development.

The President said the proposed investments would also 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.

Tinubu added that most of the projects would be implemented across the 36 states and the Federal Capital Territory, highlighting the nationwide reach of the proposed investments.

He argued that the scale of Nigeria’s infrastructure needs made additional financing necessary, stressing that external borrowing would help bridge 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,” he stated.

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The President urged the Senate leadership and the wider National Assembly to approve the plan promptly, saying timely approval would facilitate fund disbursement and accelerate project implementation.

However, the proposal is expected to face scrutiny by relevant Senate committees, particularly over its scope, implications for public debt and relationship with previously approved borrowing arrangements.

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

Akpabio announced that the request would be referred to the Senate Committee on Local and Foreign Debts for consideration, potentially in collaboration with 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.

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The committee, whose leadership Akpabio linked to Senator Haruna Manu, is expected to examine the details of the proposal and clarify its relationship with previously approved financing arrangements before the Senate determines the next legislative steps.

The Senate’s consideration will be crucial in determining whether the proposed external borrowing receives the required legislative approval to proceed.

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