Tinubu writes Senate, seeks $20.5bn, €1.04bn foreign loans to fund projects

…As Senate refers 2026–2027 supplementary borrowing plan to debt committee, gives one week to report

By Henry Umoru

President Bola Tinubu has written the Senate, seeking approval of a supplementary external borrowing plan of $20.52 billion and €1.045 billion to finance infrastructure and development projects across the country.

President Tinubu’s letter was addressed to the President of the Senate, Senator Godswill Akpabio.

Akpabio, who read the letter on Tuesday during plenary, said the request covers the 2026–2027 fiscal period and targets critical sectors, including power, transportation, agriculture, healthcare, education, water supply and security.

Tinubu, who noted that the proposed borrowing was necessary to bridge Nigeria’s infrastructure funding gap, sustain economic growth, generate employment and improve the living conditions of Nigerians, urged the National Assembly to give the plan urgent consideration and approval to facilitate the timely release of funds and implementation of the projects.

In the letter, the president said the proposed external financing would support projects and programmes spanning virtually every sector of the economy.

“The 2026–2027 Supplementary External Borrowing Plan cuts across all sectors, with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security and employment generation, as well as financial management reforms, amongst others,” he said.

According to the letter, the proposed facilities total $20,517,755,901 and €1,045,083,643, and the projects had been selected after technical and economic assessments.

“I want to emphasise that the projects and programmes included in the Borrowing Plan were selected based on thorough technical and economic evaluation, as well as their anticipated contribution to the socio-economic development of the country,” he said.

The president who explained that the proposed investments were expected to create employment opportunities, promote skills acquisition, encourage entrepreneurship, reduce poverty and strengthen food security, said, “These initiatives aim to generate employment, promote skills acquisition, foster entrepreneurship, reduce poverty and enhance food security, all of which improve the livelihood of the Nigerian child.”

He disclosed that most of the projects would be executed across the 36 states and the Federal Capital Territory, stressing that the nationwide spread of the interventions would help address development needs across the federation, adding that the scale of Nigeria’s infrastructure deficit and the financial resources required to address it have made additional external borrowing necessary.

“In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue broader external borrowings to close the financing shortfall,” Tinubu said.

He identified power, transportation and healthcare as among the critical sectors expected to benefit from the proposed financing.

“These funds will primarily be directed towards critical infrastructure projects in various sectors, including power, transportation and healthcare, amongst others,” the president said.

Tinubu, who maintained that prompt consideration of the request would enable the government to meet its obligations to Nigerians through timely disbursement of funds and effective execution of the projects, said, “Given the urgent nature of these needs and the importance of stabilising the country, it is crucial to seek the consideration and approval of the National Assembly leadership and the entire National Assembly for the 2026–2027 Supplementary External Borrowing Plan.”

The President, who noted that legislative approval would enable the government to proceed with the proposed interventions, said, “This will enable the government to fulfil its obligations to the Nigerian people through timely disbursements and effective project implementation.”

The President of the Senate thereafter referred the Communication to the Senate Committee on Local and Foreign Debts for further legislative action to report at plenary within one week.

The Committee is expected to examine the proposal, potentially in collaboration with the Senate Committee on Appropriations and other relevant committees.

The letter, as presented to the Senate, did not provide a detailed project-by-project breakdown of the proposed facilities, the specific financing terms or the amount earmarked for each sector.

The National Assembly’s consideration of the request is expected to focus on the proposed financing and its intended development objectives, including the government’s plan to close infrastructure gaps, stimulate economic activities and improve public services.

The letter titled “Federal Government 2026-2027 Supplementary External Borrowing Plans, read, ” I write in reference to the above subjects and to submit the attached Federal Government 2026-2027 Supplementary External Borrowing Plans for consideration and early approval of the National Assembly to ensure prompt implementation of our projects.

“The 2026-2027 Supplementary External Borrowing Plan cuts across all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security, and employment generation, as well as financial management reforms, amongst others.

“The total facility for the projects and programs under the Borrowing Growing Plan is $20,517,000,000 and €1,045,083,643 respectively and the summary of the breakdown is attached to this presents.

“So, Distinguished colleagues, in light of the removal of the critical reforms of my administration, the need to accelerate growth of the national economy provides support for the External Borrowing Plan, which amounts to $20,517,755,901, and €1,045,083,643.

” I want to emphasize that the projects and programs included in the Borrowing Plan were selected based on thorough technical and economic evaluation, as well as their anticipated contribution to the socio-economic development of the country.

“These initiatives aim to generate employment, promote skilled acquisition, foster entrepreneurship, reduce poverty and enhance food security, all of which improve the livelihood of the Nigerian child.

“The majority of these projects and programs will be implemented across all the 36 states and the Federal Capital Territory. In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue broader external borrowings to close the financing shortfall.

“These funds will primarily be directed towards critical infrastructure projects in various sectors, including power, transportation and healthcare, amongst others.

“Given the urgent nature of these needs and the importance of stabilizing the country, it is crucial to seek the consideration and approval of the National Assembly leadership and the entire National Assembly for the 2026-2027 Supplementary External Borrowing Plan.

“This will enable the government to fulfill its obligations to the Nigerian people through timely disbursements and effective project implementation.

“This request will be looked at by the Committee on Local and Foreign Debts, probably in collaboration with the Preparation and Finance, but majorly by the Committee on Local and Foreign Debts. And you can report back in one week.”