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.

It also recognises that the borrowing will not necessarily come from one source.

The President said 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.

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.

It is also important to note that the process will increase the accretion to the external reserves since they will be received by the Central Bank of Nigeria on behalf of the Federal Government of Nigeria.

Following the presentation of the correspondence, Akpabio referred the request to the Senate Committee on Local and Foreign Debt for further consideration. He directed the committee to report back to the Senate as soon as practicable.