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

*Seeks Reps’ approval for ₦269.4bn promissory notes to settle FG’s debts *Senate refers 2026–2027 supplementary borrowing plan to debt committee  

By Henry Umoru, Luminous Jannamike & Gift Odekina

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

He also asked the National Assembly to approve establishment and expansion of the Federal Government’s Promissory Note Programme to settle outstanding verified liabilities totalling N269.44 billion.

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

Akpabio, who read the letter yesterday at plenary, said the request covered the 2026–2027 fiscal period, targeting critical sectors, including power, transportation, agriculture, healthcare, education, water supply and security.

Tinubu, who noted that the proposed borrowing is 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 will 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 cost $20,517,755,901 and €1,045,083,643.

It explained that 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.”

‘Loan is for projects in 36 states and FCT’

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.

Tinubu added that the scale of Nigeria’s infrastructure deficit and the financial resources required to address it had 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,” he said.

He identified power, transportation and healthcare 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 maintained that prompt consideration of the request would enable the government meet its obligations to Nigerians through timely disbursement of funds and effective execution of the projects.

He 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 will enable government 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 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 programmes 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 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.

“These initiatives aim to generate employment, promote skilled acquisition, foster entrepreneurship, reduce poverty and enhance food security, all of which improves 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, among others.

“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.

“This will enable the government 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.”

₦269.4bn promissory notes

Similarly, President Bola Tinubu asked the National Assembly to approve the establishment and expansion of the federal government’s Promissory Note Programme to settle outstanding verified liabilities totalling N269.44 billion.

This was contained in a letter by the Secretary to the Government of the Federation, SGF, Senator George Akume, which was read on the floor of the House at plenary in Abuja yesterday.

The request is aimed at addressing outstanding contractual, project-related and other financial obligations owed various categories of creditors.

In a letter dated August 18, 2026, and received by the Office of the Speaker on October 21, Akume said the liabilities amounted to N269,446,402,822.56, following a comprehensive review by relevant ministries, departments and agencies, MDAs.

He said Tinubu had approved the proposal to establish and expand the programme as a mechanism for settling the verified obligations.

According to the letter, the programme is designed to provide “a structured, transparent and fiscally responsible framework” for settling the outstanding debts, while ensuring that only verified and validated claims are admitted.

The President is seeking legislative approval for the issuance of promissory notes worth N269.44 billion, or such other amount as may be approved by the National Assembly, to settle the liabilities contained in the accompanying schedule.

The request also seeks approval for the inclusion of identified categories of liabilities and beneficiaries in the programme, subject to final verification, reconciliation and certification by the relevant government agencies.

Tinubu further asked the National Assembly to authorise the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office and other relevant agencies, to take the necessary steps to implement the programme.

Akume explained that the proposal was intended to mitigate the continued accumulation of interest, penalties and other financial costs associated with the outstanding obligations.

He said the arrangement would also provide relief to affected creditors and strengthen confidence in the federal government’s commitment to honouring legitimate contractual and other obligations.

The SGF noted that the federal government had previously used the Promissory Note Programme to settle inherited local debts and contractual obligations, following Federal Executive Council’s approval and subsequent National Assembly approval.

He added that the proposed arrangement was expected to facilitate the orderly settlement of the liabilities without imposing an immediate and disproportionate cash-flow burden on the federal government.

According to the letter, the programme will also support fiscal planning by spreading repayment obligations over an appropriate period, in line with prudent debt management principles.

Akume urged the House to give the request urgent consideration, citing the magnitude and age of some of the outstanding liabilities and the possibility of further accumulation of interest and associated costs.

He said early legislative approval would enable the Federal Government commence the necessary processes for issuing the promissory notes and bringing the affected liabilities to a close.

The detailed schedule of the liabilities, including the relevant categories, beneficiaries, amounts and supporting documentation, was forwarded to the National Assembly for consideration.

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