ABUJA, Oct 27 – Nigerian President Bola Tinubu has asked the National Assembly to approve a supplementary external borrowing plan totalling $20.52 billion and €1.045 billion for 2026–2027, as the government seeks additional financing for infrastructure and other development priorities.
The request was conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday. The proposed borrowing amounts are $20,517,755,901 and €1,045,083,643.
Tinubu said the funds would help address Nigeria’s infrastructure deficit and close financing gaps across key sectors, including electricity, transportation, healthcare, education, agriculture, water supply and security. The proposed spending priorities also include job creation 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,” the President wrote.
According to Tinubu, the proposed projects have undergone technical and economic assessments intended to ensure they deliver meaningful development benefits. He highlighted poverty reduction, skills development, entrepreneurship and national food security among the expected priorities.
The President argued that the scale of Nigeria’s infrastructure requirements and the financial resources needed to address them had made external borrowing necessary to bridge the funding gap.
“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.
Senate begins scrutiny of borrowing proposal
Following the presentation of the letter, Akpabio noted that aspects of the proposed borrowing framework had featured in earlier government borrowing plans and budgetary arrangements.
He referred the request to the Senate Committee on Local and Foreign Debts, chaired by Senator Haruna Manu, for detailed scrutiny. The Senate committees on Appropriations and Finance are also expected to participate in the review.
Akpabio said the committee would examine the proposal and clarify its scope, adding that related borrowing plans had previously been considered by the National Assembly.
The referral begins the legislative review process. The request does not, by itself, constitute approval for the government to raise the proposed funds.
Infrastructure financing and public debt concerns
The proposed borrowing comes as Nigeria continues to face substantial infrastructure financing requirements while attracting scrutiny over rising public debt and its reliance on borrowing to fund development spending.
External loans can provide governments with resources for capital-intensive projects that might otherwise be delayed by limited budgetary revenue. However, their long-term fiscal implications depend on borrowing terms, project execution, returns on investment and the government’s capacity to service the resulting obligations.
For Nigeria, the effectiveness of the proposed plan will depend not only on securing legislative approval and financing, but also on how the funds are allocated and whether the projects deliver measurable economic and social benefits.
The National Assembly’s review will be an important step in determining the scope of the supplementary borrowing plan and its place within the government’s wider financing framework for 2026–2027.
