President Bola Tinubu has asked the Senate to approve about $7.7 billion in external borrowing. That is about ₦10.79 trillion at the budget exchange rate of ₦1,409 to the dollar. Senate President Godswill Akpabio read the request at plenary on 4 November. The letter is dated 26 October. Akpabio said it supersedes an earlier $20.3 billion proposal because it is more explicit on how the money will be raised.
The 2026 Appropriation Act provides for ₦29.2 trillion in new borrowing. That comprises ₦18.4 trillion domestic and ₦10.79 trillion external. The deficit is projected at about ₦31.4 trillion. Nigeria has borrowed heavily since 2023 to fund subsidies, salaries and infrastructure. Debt service now consumes most of the revenue. The government argues that concessional and commercial loans are necessary to close the gap. Critics say the borrowing is outpacing the economy’s capacity to repay.
The letter lists concessional and commercial loans, International Monetary Fund facilities, bridge financing and Eurobonds. It stresses Eurobonds as faster and able to raise larger sums. The money would part-fund the 2026 deficit. Akpabio referred the request to the Committee on Local and Foreign Debts. He asked it to report back as soon as practicable. The Senate has not approved it.
The choice of instruments matters. Eurobonds carry market rates and currency risk. Concessional loans are cheaper but slower. IMF facilities come with conditions. Bridge financing is short-term and expensive. The government wants speed and scale. It is willing to pay for both.
The request comes as revenue underperforms. The first quarter deficit was ₦4.69 trillion. Foreign borrowing projected at ₦2.70 trillion produced no inflow. Domestic borrowing is filling the gap. That crowds out private credit and keeps interest rates high.
Winners: The Federal Government, which gains financing. Contractors, who gain projects. Foreign lenders, who gain a borrower. Investors, who gain bonds. Losers: Taxpayers, who service the debt. Future generations, who inherit it. Domestic borrowers, who face higher rates. The naira, if external obligations rise. Sectors that miss out on spending.
Bottom Line: Seven point seven billion dollars. A thirty-one trillion naira deficit. The Senate must scrutinise the terms. Borrowing is not a strategy. It is a bridge. The government must show what the money builds.