By Paul Joseph
President Bola Tinubu has asked the Senate to approve external loans totalling approximately $20.52 billion and €1.045 billion to finance projects under the Federal Government’s 2026–2027 supplementary external borrowing plan.
The request was conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday.
According to the letter, the proposed borrowing comprises $20,517,755,901 and €1,045,083,643, intended to address Nigeria’s infrastructure deficit and close funding gaps across critical sectors of the economy.
The targeted sectors include power, transportation, healthcare, education, agriculture, water supply, security, job creation and financial management reforms.
In the letter, Tinubu urged the National Assembly to consider and approve the borrowing plan promptly to facilitate the implementation of the proposed projects.
He explained that the selected projects had undergone technical and economic evaluations to ensure they deliver meaningful benefits in poverty reduction, skills acquisition, entrepreneurship development and national food security.
The President also justified the proposed borrowing by citing the substantial financial resources required to address Nigeria’s infrastructure challenges.
He said external borrowing had become necessary to bridge the funding shortfall and support investments in critical areas of national development.
Following the presentation of the request, Akpabio observed that aspects of the borrowing framework had featured in earlier government borrowing plans.
He subsequently referred the proposal to the Senate Committee on Local and Foreign Debts, chaired by Senator Haruna Manu, for detailed legislative scrutiny.
The committee is expected to work with the Senate Committees on Appropriations and Finance to examine the proposal and clarify its scope before further legislative action.
Akpabio noted that the borrowing plan had previously featured in government budget and external borrowing frameworks covering the 2025–2027 period.
However, he said the Senate committee would review the request to establish the details before the chamber takes further action.
The committee’s review is expected to examine the proposed borrowing in relation to Nigeria’s existing debt management framework and the funding requirements of the projects outlined by the Federal Government.
The Senate’s consideration will determine the next steps towards securing legislative approval for the supplementary external borrowing plan.
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