Tinubu Seeks Senate Approval for $20.52bn, €1.045bn External Loans

President Bola Tinubu has asked the Senate to approve a supplementary external borrowing plan worth $20.52 billion and €1.045 billion to finance infrastructure and development projects across Nigeria during the 2026–2027 fiscal period.

The request was conveyed in a letter addressed to Senate President Godswill Akpabio, who read it during Tuesday’s plenary session.

Tinubu said the proposed loans would support critical sectors, including power, transportation, agriculture, healthcare, education, water supply and security, while also promoting employment generation and financial management reforms.

The President argued that additional external financing was necessary to address Nigeria’s infrastructure deficit, sustain economic growth, create jobs and improve living conditions across the country. He urged the National Assembly to consider and approve the proposal promptly to facilitate the release of funds and implementation of the planned projects.

According to the letter, the proposed facilities amount to $20,517,755,901 and €1,045,083,643. Tinubu said the projects and programmes were selected following technical and economic assessments, with consideration given to their expected contributions to the country’s socioeconomic development.

He explained that the investments were expected to create employment opportunities, promote skills acquisition, encourage entrepreneurship, reduce poverty and strengthen food security.

The President added that most of the proposed projects would be implemented across Nigeria’s 36 states and the Federal Capital Territory, saying the nationwide distribution was intended to address development needs across the federation.

Tinubu maintained that the scale of the country’s infrastructure needs and the financial resources required to address them had made broader external borrowing necessary to close the funding gap.

He identified power, transportation and healthcare as among the key sectors expected to benefit from the proposed financing, although the letter did not provide a detailed breakdown of the amount allocated to each sector.

The President also stressed that timely legislative approval would enable the government to meet its obligations to Nigerians through prompt disbursement and effective project execution.

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

The committee is expected to examine the borrowing proposal, potentially working with the Senate Committee on Appropriations and other relevant committees.

However, the communication presented to the Senate did not contain a detailed project-by-project breakdown, specific financing terms or the precise amount earmarked for individual sectors.

The National Assembly’s consideration will therefore cover the proposed external financing and its stated development objectives, including closing infrastructure gaps, stimulating economic activity and improving public services.