Tinubu drops bigger borrowing plan, now asks lawmakers to approve $7.7bn loan

President Bola Tinubu has asked the National Assembly to approve about $7.7 billion in new foreign loans, and has pulled back the much larger borrowing request he sent to lawmakers only last week.

The earlier plan, under the 2026–2027 Supplementary External Borrowing Plan, sought $20.5 billion and €1.05 billion. It has now been withdrawn and replaced by the smaller request, which works out at roughly ₦10.9 trillion at ₦1,400 to the dollar.

Senate President Godswill Akpabio read the President's letter at Wednesday's sitting and sent it to the Senate committees on local and foreign debts and on appropriations, asking them to report back quickly.

According to the letter, the money will help fund the 2026 budget deficit and pay for projects in infrastructure, defence, agriculture, health, power and education. Tinubu said the government would lean mainly on Eurobonds, which he described as quicker to arrange and able to raise larger sums at lower cost, while looking at other options alongside.

Nigeria's growing debt has become a major talking point ahead of the 2027 elections. Former President Olusegun Obasanjo and opposition candidates have criticised the pace of borrowing, while the government says the loans are needed to close the country's infrastructure gap.