NIGERIA · ECONOMY
Key Facts
- The country Nigeria, Africa’s most populous nation, is led by President Bola Tinubu.
- What happened Tinubu’s letter, dated Monday 26 October, asks the Senate to approve US$7.7 billion in foreign borrowing.
- The change The request replaces an earlier plan of about US$20.5 billion.
- The plan Officials favour Eurobonds, dollar bonds sold to international investors, to raise the money fast.
- The next step Senate committees, led by the one on foreign debt, will review the request before any vote.
Nigeria’s president has cut a giant borrowing plan down to size. On Wednesday 4 November 2026, Senate President Godswill Akpabio read a letter from President Bola Tinubu asking senators to approve US$7.7 billion in foreign loans for the 2026 budget.
For US readers, the request matters most to anyone who holds Nigerian Eurobonds, the dollar bonds the government sells abroad, because Tinubu names new Eurobond sales as his first choice. It replaces an earlier request of about US$20.5 billion that the president withdrew.
What Happened
The letter is dated Monday 26 October 2026 and was read at the Senate’s Wednesday session. Tinubu cites sections 21(1) and 27(1) of the Debt Management Office Act 2003, the law that sets the rules for federal borrowing.
Akpabio sent the request to Senate committees, including the Committee on Local and Foreign Debts, for review. The National Assembly, Nigeria’s parliament, must approve it before the government can accept any loan.
What the Request Says
The US$7.7 billion equals about ₦10.79 trillion at the budget exchange rate of ₦1,400 per US dollar. It is the foreign part of ₦29.2 trillion (about US$20.9 billion at that rate) of new borrowing set in the 2026 budget.
The other ₦18.4 trillion (about US$13.1 billion) is meant to come from domestic lenders. The 2026 budget deficit is projected at ₦31.4 trillion (about US$22.4 billion).
Tinubu says the money would fund defence and security, transport, agriculture, power, education and health. The dollars would be paid to the Central Bank of Nigeria, which should help strengthen foreign reserves.
Why Eurobonds Come First
Tinubu writes that Eurobonds can raise larger sums in a shorter time and at relatively lower cost. The government also lists multilateral lenders, bilateral partners, International Monetary Fund facilities and bridge loans as other sources.
A Eurobond is a bond in US dollars sold to foreign investors, so Nigeria must repay it in dollars with interest. That makes the naira exchange rate a central risk for the budget.
What It Means for You
Investors who hold Nigerian dollar bonds through US funds should note that the new request is far smaller than the earlier one of about US$20.5 billion. No sale date, size or price for a new Eurobond has been announced.
Travellers and US companies in Nigeria need not change plans, since the request sets no new taxes or rules. Companies paid in naira should watch the exchange rate, because dollar loans are repaid in dollars.
What Is Not Known
The letter was read in the Senate. It is not known when senators will vote, or when the House of Representatives, the lower chamber, will act.
The timing, size and price of any Eurobond are not known. Neither is how much of the US$7.7 billion would come from loans rather than bonds.
More: Nigeria news in English, every day from The Rio Times. Related: Nigeria seeks new loans, Nigeria eyes selling a stake in its oil giant.
Frequently Asked Questions
How Much Does Nigeria Want to Borrow?
President Tinubu asked the Senate to approve US$7.7 billion (about ₦10.79 trillion) in external borrowing. It is the foreign part of the 2026 budget’s ₦29.2 trillion borrowing plan.
Why Did the Request Change?
Akpabio said the new request replaces an earlier one that the president withdrew, of about US$20.5 billion. The new letter covers only the foreign part of the 2026 borrowing plan.
What Is a Eurobond?
It is a bond sold in US dollars to international investors. The government must repay it in dollars with interest.
Who Must Approve the Loan?
The National Assembly must approve it. The Senate sent the request to committees, including its Committee on Local and Foreign Debts.
Sources: Presidency of Nigeria, letter to the Senate President dated 26 October 2026, read in plenary on 4 November 2026; National Assembly of Nigeria, Senate plenary of 4 November 2026; Central Bank of Nigeria, exchange rate data.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief