Tinubu Writes Senate, Seeks Approval for $20.52bn, €1.05bn Loans

Tinubu Writes Senate, Seeks Approval for $20.52bn, €1.05bn Loans

President Bola Tinubu has asked the Senate to approve a supplementary external borrowing plan of $20.52 billion and €1.05 billion for the 2026–2027 fiscal period.

The request was conveyed in a letter addressed to Senate President Godswill Akpabio and read during plenary on Tuesday.

Tinubu said the proposed loans would finance critical sectors of the economy, including infrastructure, agriculture, healthcare, education, water supply, security, employment generation and public financial management reforms.

According to the President, the borrowing plan is designed to address Nigeria’s infrastructure deficit and bridge funding gaps hindering the implementation of key development projects.

He explained that the projects and programmes were selected following technical and economic assessments, taking into account their expected contributions to the country’s socioeconomic development.

The President added that the initiatives were intended to create jobs, promote skills acquisition, encourage entrepreneurship, reduce poverty and strengthen food security, thereby improving citizens’ livelihoods.

Tinubu further disclosed that most of the projects would be implemented across the 36 states and the Federal Capital Territory (FCT).

He maintained that substantial investment in infrastructure remained essential to sustaining economic growth and addressing longstanding development challenges.

“ 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,” the President said.

He noted that the funds would primarily support critical infrastructure projects, particularly in the power, transportation and healthcare sectors.

Tinubu urged the Senate to give the proposal urgent consideration, arguing that approval would enable the Federal Government to meet its obligations to Nigerians through timely fund disbursement and effective project implementation.

In his remarks, Akpabio said the borrowing plan had previously featured in the Federal Government’s approved borrowing framework.

He subsequently referred the request to the Senate Committee on Local and Foreign Debts for further legislative consideration, in collaboration with the Committees on Appropriations and Finance.

“The borrowing plan is attached, but of course, this was even earlier approved in our budget, and also the external borrowing plan was approved as far back as 2025 to 2027,” Akpabio said.

The Senate committees are expected to examine the proposal and provide further legislative input before the upper chamber takes any additional action.