Tinubu withdraws $20.52bn loan request, seeks Senate approval for $7.7bn borrowing
President Bola Tinubu has withdrawn his earlier request for Senate approval to secure $20.52bn and €1.045bn in external loans, replacing it with a fresh $7.7bn borrowing proposal to partly finance the 2026 budget deficit.
The new request was conveyed in a letter dated October 26 and read by Senate President Godswill Akpabio during plenary on Wednesday.
Akpabio told lawmakers that the latest communication effectively cancelled the President’s October 27 request for approval to obtain the $20.52bn and €1.045bn external loans.
The proposed $7.7bn borrowing forms part of the N29.2tn financing plan approved in the 2026 Appropriation Act to address the country’s N31.4tn budget deficit.
Tinubu said the external component of the borrowing plan stood at N10.79tn, while N18.4tn would be sourced from the domestic market.
In the letter, the President explained that the government intended to raise the external funds through different financing channels, including Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities and bridge financing arrangements.
However, he said the government would prioritise Eurobond issuance because of the relatively shorter time required to conclude such transactions and the potential to raise substantial funds at lower costs.
“All the options will be pursued simultaneously, considering the costs and related benefits to the country and the time required to access the funds,” Tinubu said.
“In view of this, emphasis will be on the issuance of Eurobonds, which is typically faster to conclude. Additionally, a large amount can be raised through Eurobonds at a relatively lower cost.”
