Tinubu Seeks National Assembly’s Approval for $20.5bn, €1.04bn External Loans

* President cites infrastructure deficit, economic growth, security, agriculture, healthcare, education as priorities

* Senate refers supplementary borrowing plan to debt committee, gives one week to report

Sunday Aborisade in Abuja

President Bola Tinubu has asked the National Assembly to approve a supplementary external borrowing plan of $20.52 billion and €1.045 billion to finance projects and programmes across critical sectors of the economy.

Tinubu, in a letter read by Senate President Godswill Akpabio at plenary on Tuesday, said the proposed facilities were intended to address the country’s infrastructure deficit, accelerate economic growth, generate employment and improve the living conditions of Nigerians.

The president urged the National Assembly to consider and approve the supplementary external borrowing plan for 2026–2027 to enable the Federal Government to implement its projects and programmes without delay.

He said the proposed borrowing plan covered infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms, among other sectors.

Tinubu said: “The 2026–2027 Supplementary External Borrowing Plan cuts across all sectors, with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security and employment generation, as well as financial management reforms, amongst others.”

Explaining the rationale for the request, the president said the need to sustain economic growth following the implementation of his administration’s reforms had made additional external financing necessary.

“In light of the critical reforms of my administration, the need to accelerate growth of the national economy provides support for the External Borrowing Plan, which amounts to $20,517,755,901 and €1,045,083,643,” he said.

He added that the projects and programmes covered by the plan had undergone technical and economic assessments to establish their potential contributions to national 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,” Tinubu said.

According to him, the proposed interventions are expected to stimulate economic activities, create jobs, promote skills acquisition, encourage entrepreneurship, reduce poverty and strengthen food security.

“These initiatives aim to generate employment, promote skills acquisition, foster entrepreneurship, reduce poverty and enhance food security, all of which improve the livelihood of the Nigerian child,” he said.

The president disclosed that most of the projects and programmes would be implemented across the 36 states of the federation and the Federal Capital Territory (FCT), underscoring the nationwide scope of the proposed investments.

He said the scale of the country’s infrastructure needs and the financial resources required to address them had made broader external borrowing necessary to bridge the funding gap.

“The majority of these projects and programmes will be implemented across all the 36 states and the Federal Capital Territory,” he said.

“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 broader external borrowings to close the financing shortfall.”

He said the funds would be channelled primarily into critical infrastructure, particularly power, transportation and healthcare, while other sectors would also benefit from the proposed financing arrangement.

“These funds will primarily be directed towards critical infrastructure projects in various sectors, including power, transportation and healthcare, amongst others,” the president said.

Tinubu urged the Senate and the House of Representatives to give the proposal urgent consideration, arguing that prompt approval would facilitate timely disbursement and effective implementation of the projects.

The president said: “Given the urgent nature of these needs and the importance of stabilising the country, it is crucial to seek the consideration and approval of the National Assembly leadership and the entire National Assembly for the 2026–2027 Supplementary External Borrowing Plan.

“This will enable the government to fulfil its obligations to the Nigerian people through timely disbursements and effective project implementation.”

Following the presentation of the letter, Akpabio referred the request to the Senate Committee on Local and Foreign Debts for consideration and directed it to report back to the chamber within one week.

The committee is expected to undertake the initial legislative review of the proposal, with possible collaboration with the Senate Committee on Appropriations and other relevant committees.

The request will require legislative scrutiny before the proposed external financing can proceed.

The letter did not provide, in the material presented to the Senate, a project-by-project breakdown of the proposed facilities, the individual financing terms or the allocation of the funds among the beneficiary sectors.

The proposed borrowing plan comes as the Federal Government seeks additional resources to finance infrastructure and development programmes amid competing demands on public finances.

Its implementation will depend on the National Assembly’s consideration of the proposal and the details of the projects to be financed under the plan.