Tinubu Seeks $21.7bn Foreign Borrowing as Nigeria’s Debt Hits ₦166.79trn

President Bola Tinubu has asked the National Assembly to approve an external borrowing plan worth about $21.7bn for 2026 and 2027, as Nigeria’s public debt rose to ₦166.79trn at the end of June 2026.

The proposed financing comprises $20.52bn and €1.045bn under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan. The euro component is equivalent to approximately $1.17bn, according to Reuters. [CITE]

Tinubu’s request was conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday.

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The President said the funds would support projects and programmes in infrastructure, agriculture, healthcare, education, water supply, security, employment generation and public financial management reforms.

He urged the National Assembly to consider and approve the plan promptly to facilitate project implementation and enable the government to meet its obligations to Nigerians.

The President said the proposed projects had been selected based on technical and economic assessments, with consideration given to their expected contributions to socioeconomic development.

Senate to scrutinise borrowing plan

Akpabio referred the request to the Senate Committee on Local and Foreign Debts, in collaboration with the committees on Appropriation and Finance, directing them to report back within one week.

The Senate President indicated that aspects of the borrowing plan had featured in previous budgetary considerations and that an external borrowing plan had also received approval in an earlier period.

The committee’s review is expected to clarify the relationship between the latest request and previously approved borrowing arrangements.

Public debt rises to ₦166.79trn

The proposed borrowing comes amid a rising public debt profile, with Nigeria’s total debt stock reaching ₦166.79trn as of June 30, 2026, according to the Debt Management Office (DMO).

The figure represented an increase of ₦7.44trn, or 4.7 per cent, from ₦159.35trn recorded at the end of March 2026.

Of the total, domestic debt accounted for ₦91.59trn, while external debt stood at ₦75.2trn. [CITE]

The proposed foreign borrowing is equivalent to about $21.7bn, although the actual amount eventually disbursed would depend on the financing arrangements and implementation of the plan.

External borrowing can provide governments with funds for major infrastructure and development projects, but it also creates repayment obligations and exposes public finances to exchange-rate risks where loans are denominated in foreign currencies.

The National Assembly’s scrutiny of the proposal will therefore be important in determining the financing terms, intended uses of the funds and the implications for the country’s debt obligations.

Further details on the individual facilities, their lenders, interest rates, repayment periods and project-by-project allocations were not specified in the material presented to the Senate.