Tinubu seeks NASS approval for $20.5bn, €1.45bn supplementary borrowing plan

President Bola Tinubu has written to the National Assembly, seeking legislative approval for the Federal Government’s 2026-2027 supplementary external borrowing plan.

The proposed debt package, valued at $20.5 billion and €1.45 billion, is designed to fund critical infrastructure, agriculture, education, and other key sectors aligned with the development priorities of the administration.

This request comes amid debate regarding the continued reliance of the government on foreign loans and the country’s rising debt profile. In April, the Federal Government increased its planned borrowing for 2026 by ₦11.31 trillion to a total of ₦29.20 trillion.

During that same period, the government projected a fiscal deficit of ₦31.46 trillion, alongside debt-servicing obligations amounting to ₦15.81 trillion.

The administration has faced criticism over its borrowing strategy following the removal of the petrol subsidy, a policy initially expected to free up government resources for national development.

The presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, warned earlier this year that the nation was heading toward a debt crisis. He raised alarms over the continuous borrowing, unresolved contractor payments, and the slow implementation of capital projects.

The Emir of Kano, Muhammadu Sanusi II, has also criticised the fresh borrowing requests in a post-subsidy economy. The monarch stressed that citizens should instead see the dividends of the policy through improved public finances.

However, the Federal Government has defended its economic strategy, insisting that the external funds are necessary to drive national development.

In July, Finance Minister Taiwo Oyedele dismissed claims that the Tinubu administration had borrowed approximately ₦80 trillion over three years. Oyedele explained that the reported surge in the debt stock was driven by the impact of naira depreciation on existing external obligations, rather than fresh borrowing alone.

The National Assembly previously approved a $2.347 billion external borrowing request in October 2025 to partly finance the budget deficit and refinance maturing Eurobonds. That approval also included a proposed $500 million sovereign sukuk for infrastructure projects.