BREAKING: Tinubu Seeks N’Assembly Approval for $20.5bn, €1.04bn Fresh Loans

President Bola Tinubu has asked the National Assembly to approve a fresh external borrowing plan worth $20.52 billion and €1.04 billion to finance projects and programmes across several sectors of the Nigerian economy.

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

The proposal seeks legislative approval for additional foreign borrowing at a time when the Federal Government continues to rely on a combination of domestic revenue, loans and other financing arrangements to meet its spending obligations.

The proposed borrowing package, which includes $20.52 billion and €1.04 billion, is expected to support government programmes and projects.

However, the full breakdown of the proposed facilities, including the individual amounts allocated to specific projects, was not immediately available in the information provided.

Tinubu’s request now places the proposed borrowing before the National Assembly, which has the responsibility of examining and approving federal borrowing proposals in line with the relevant legal provisions.

The Senate and the House of Representatives will consider the request through the appropriate legislative procedures before any approval can be granted.

External borrowing has remained an important part of the Federal Government’s funding strategy under Tinubu.

His administration has repeatedly approached lawmakers for approval to obtain loans for budget implementation, infrastructure development and the refinancing of existing obligations.

The government has maintained that additional financing is necessary to address Nigeria’s infrastructure deficit, support economic development and meet financial commitments.

However, the growing use of borrowing has also kept public debt, debt servicing and the management of government revenue at the centre of economic discussions.

Further details about the lenders, repayment terms, interest rates, project allocations and the timeline for the proposed borrowing were not contained in the information immediately available on the request.

The National Assembly’s consideration of the proposal is expected to provide further clarity on the intended use of the funds and the financial commitments Nigeria would assume if the request is approved.

In a related development, President Bola Tinubu had earlier approached the National Assembly in May 2025 for approval of a major external borrowing plan intended to support government projects and programmes across several sectors.

On May 27, 2025, reports indicated that the President had requested approval for an external borrowing plan valued at about $21.5 billion, alongside other financing arrangements under the Federal Government’s proposed 2025–2026 borrowing plan.

The request was conveyed to the Senate through a letter read by Akpabio during plenary.

Tinubu said the proposed financing would cover several sectors, including infrastructure, agriculture, health, education, water supply, security and employment generation.

In the letter, the President stated: “The 2025–2026 borrowing plan covers all sectors, with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security and employment generation, as well as financial and monetary reforms, among others.”

The administration argued that the financing was necessary to address the country’s infrastructure needs and support programmes designed to improve economic activity.

It also pointed to the limitations of domestic funding and the scale of resources required to implement projects across the country.

The May 2025 request was not limited to external loans.

Tinubu also sought legislative approval for the issuance of Federal Government bonds worth approximately N757.9 billion to settle outstanding pension liabilities under the Contributory Pension Scheme.

The proposed bond issuance was intended t help the government meet its obligations to retired public sector workers. It represented a separate financing arrangement from the external borrowing plan.

Following the presentation of the request, the Senate referred the proposal to its Committee on Local and Foreign Debts for further consideration.

The committee was expected to examine the details and report back to the chamber.

The borrowing proposal subsequently received attention from both chambers of the National Assembly.

In July 2025, the Senate approved the administration’s external borrowing plan after consideration of a report by its Committee on Local and Foreign Debts.

The approval covered foreign financing for the 2025–2026 fiscal years, with funds intended to support infrastructure, healthcare, education, security and other government priorities.

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