Tinubu Swaps $20.5 Billion Loan Request for $7.7 Billion Plan With a Clear Preference for Eurobonds

President Bola Tinubu has formally requested parliamentary approval for a $7.7 billion external borrowing plan to help fund projects and programmes in the 2026 budget.

The request, contained in a letter read on the floor of the Senate by Senate President Godswill Akpabio, supersedes an earlier proposal to borrow $20.52 billion externally. Akpabio said the government had revised the plan to reflect funding from multiple sources and provide greater detail on its financing structure .

The numbers behind the request

The $7.7 billion (approximately N10.79 trillion at the budget exchange rate of N1,400 to the dollar) represents the external component of the N29.2 trillion in new borrowing approved under the 2026 Appropriation Act. That total borrowing envelope is split between N18.4 trillion in domestic borrowing and N10.79 trillion in external financing, designed to part-finance a budget deficit of about N31.4 trillion .

Tinubu said the funds would target critical capital projects across infrastructure, defence and security, agriculture, healthcare, power, transportation and education .

Why the change of plan?

The President indicated that the government would pursue multiple financing options simultaneously including concessional and commercial loans from multilateral and bilateral institutions, IMF facilities, bridge financing and Eurobond issuance weighing each on cost, benefits and access timelines .

Emphasis, however, will be on Eurobonds. "Eurobonds are typically faster to conclude. Additionally, a large amount can be raised through Eurobonds at a relatively lower cost," Tinubu said in the letter .

Akpabio described the revised approach as a "willing-seller, willing-buyer arrangement," allowing the government to search for the best terms rather than depend on a single borrowing source .

The debt backdrop

The request comes as Nigeria's public debt continues to climb. Total public debt reached N166.79 trillion (about $120.93 billion) as of June 2026, up from N87.38 trillion when Tinubu took office in June 2023 . External debt stood at $54.52 billion, with interest payments accounting for a growing share of debt-service costs $1.11 billion in the first half of 2026 alone, a 12.2% year-on-year increase .

The 2026 budget earmarks N15.81 trillion for debt servicing over the full year, roughly 45.2% of projected government revenue .

The request has been referred to the joint committees on Loans and Debt Management and Finance for legislative review .