President Bola Tinubu has asked the National Assembly to approve external loans worth $20.52 billion and €1.05 billion to finance projects across Nigeria under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan.Nigeria merchant bank
The request was contained in a letter read by Senate President Godswill Akpabio during plenary on Tuesday.
President Tinubu said the proposed loans, amounting to $20,517,755,901 and €1,045,083,643, would support projects in infrastructure, agriculture, healthcare, education, water supply, security and employment generation.
He explained that the borrowing plan was intended to address funding gaps and support economic growth.
“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 said.
The president said the funds would be directed towards projects in the power, transportation and healthcare sectors, among others.
According to him, most of the projects would be implemented across the 36 states and the Federal Capital Territory.
Tinubu said the projects were selected following technical and economic assessments of their expected contributions to the country’s development.
“I want to emphasise that the projects and programmes included in the Borrowing Plan were selected based on thorough technical and economic evaluation, as well as their anticipated contribution to the socio-economic development of the country,” he said.
He added that the projects were expected to create jobs, promote skills acquisition, support businesses, reduce poverty and improve food security.
The president urged lawmakers to approve the request to enable the government to proceed with the projects.
Following the presentation, Senator Akpabio referred the proposal to the Senate Committee on Local and Foreign Debts for consideration in collaboration with the committees on Appropriations and Finance.
He directed the committees to report back within one week.
Akpabio noted that aspects of the borrowing plan had previously been considered under government budgets and borrowing arrangements.
The request comes amid concerns over Nigeria’s debt burden and the cost of servicing loans.Buy Maps
According to figures released by the Debt Management Office (DMO), Nigeria’s total public debt stood at N166.79 trillion as of June 30, 2026, up from N159.35 trillion recorded at the end of March.
The debt comprised N91.59 trillion in domestic obligations and N75.20 trillion in external debt.
Former Anambra State Governor Peter Obi had earlier questioned the government’s continued borrowing despite the removal of petrol subsidy.
The Emir of Kano Muhammadu Sanusi II also raised concerns about borrowing after the subsidy removal, questioning why the policy had not resulted in improved public finances.
The Federal Government has maintained that borrowing is necessary to finance infrastructure and other development projects.
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In July, Finance Minister Taiwo Oyedele rejected claims that the administration had borrowed about N80 trillion in three years.
He explained that changes in the value of the naira and the recognition of existing financial obligations contributed to the increase in the country’s reported debt stock.
In October 2025, the National Assembly approved Tinubu’s request to raise $2.347 billion from the international capital market to finance part of the 2025 budget deficit and refinance maturing Eurobonds.
The lawmakers also approved a proposed $500 million sovereign sukuk for infrastructure projects.
The latest borrowing request is awaiting legislative approval.
Source:QEDNG
