Gehgeh Speaks Out as Tinubu Seeks Senate Approval for Fresh Foreign Loans

President Bola Ahmed Tinubu has asked the Senate to approve a fresh external borrowing of $7.7 billion, equivalent to N10.79 trillion, to part-finance the Federal Government’s 2026 budget deficit.

The request, contained in a letter dated October 26, 2026, was read by Senate President Godswill Akpabio during plenary. The President explained that the Federal Government intended to raise the $7.7 billion through one or a combination of several financing options.

These include concessional and commercial loans from multilateral and bilateral institutions, the International Monetary Fund (IMF), bridge financing facilities, direct borrowing from international financial institutions and Eurobond issuance. According to Tinubu, all available options would be pursued simultaneously, taking into consideration their costs, benefits and the time required to access the funds.

On the cost of borrowing, Tinubu explained that the final interest rates, repayment periods and other conditions would depend on prevailing market conditions at the time of pricing.

Tinubu also argued that the borrowing would help strengthen Nigeria’s external reserves and support the stability of the naira. He explained that the funds would be received by the Central Bank of Nigeria on behalf of the Federal Government, thereby increasing the country’s foreign reserves.

The provisions require external borrowing arrangements to be presented before the National Assembly for approval through a resolution.

Tinubu also requested authorisation for the Minister of Finance and Coordinating Minister of the Economy, working with the Debt Management Office, to take all necessary steps to implement the proposed borrowing. Following the presentation of the correspondence, Akpabio referred the request to the Senate Committee on Local and Foreign Debt for further consideration.

Senate President Godswill Akpabio noted that this new proposal supersedes the earlier request for $20.5 billion and €1.05 billion, which has now been withdrawn.