President Bola Ahmed Tinubu has asked the National Assembly to approve a fresh external borrowing of $7.7 billion, equivalent to approximately N10.79 trillion, to finance part of the Federal Government's 2026 budget deficit.

The request was contained in a letter dated October 26, 2026, addressed to the Senate President, Godswill Akpabio, and read during Wednesday's plenary session.

Following its presentation, the Senate referred the request to its Committee on Local and Foreign Debts for further legislative consideration and report.

According to the President, the proposed borrowing represents the external financing component of the N29.2 trillion new borrowing approved under the 2026 Appropriation Act to part-finance the country's projected N31.4 trillion budget deficit.

The proposed external loan is calculated at the budget benchmark exchange rate of N1,400 to the dollar.

The approved borrowing plan comprises N18.4 trillion in domestic borrowing and N10.79 trillion ($7.7 billion) in external borrowing.

Tinubu explained that the request was in compliance with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, etc.) Act, 2003, which require legislative approval for external debt transactions.

Outlining the government's borrowing strategy, the President said Nigeria would explore different international financing options, with greater emphasis on Eurobond issuance because of its relatively faster execution and capacity to raise substantial funds.

"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.

He assured the lawmakers that the Federal Ministry of Finance and the Debt Management Office (DMO) would negotiate favourable interest rates and repayment tenors in line with prevailing market conditions.

On the proposed utilisation of the funds, Tinubu said the proceeds would support critical infrastructure and development programmes, particularly in defence and security, transportation, agriculture, power, education and healthcare.

He added that the foreign currency inflow would be received by the Central Bank of Nigeria on behalf of the Federal Government, with the expectation that it would strengthen foreign reserves, support exchange-rate stability and reinforce ongoing macroeconomic reforms.

Reacting to the request, Akpabio said the new communication effectively superseded an earlier borrowing proposal of about $20 billion, describing the latest request as more explicit about the government's financing requirements and approach.

He explained that the borrowing would not necessarily be raised at once, as the government would explore available international markets for the most favourable terms.

"We have to go out there and search for the best terms, and achieve what they call a win-win seller, win-win buyer approach," the Senate President said before referring the request to the relevant committee.

The Minister of Finance and Coordinating Minister of the Economy, alongside the DMO, are expected to oversee the proposed debt issuance if the National Assembly grants approval.

The committee is expected to report back to the Senate for further legislative action, as the fresh borrowing proposal adds to ongoing public debate over Nigeria's debt profile, borrowing strategy and fiscal sustainability.