Nigerian Senate examines $7.7 billion foreign loan request
By the AFREEQUE newsroom, based on Punch
The Nigerian Senate referred Bola Tinubu’s request to borrow $7.7 billion abroad to its debts committee. The financing, included in the 2026 budget, is intended to help cover a projected deficit of 31.4 trillion naira, Punch reports.
The Nigerian Senate on Wednesday referred President Bola Tinubu’s request to raise $7.7 billion, or 10.79 trillion naira, to its local and external debts committee. The committee is to examine the request and submit its findings as soon as possible, Punch reports.
The loan represents the external component of the 29.2 trillion naira in new financing provided for under the 2026 Finance Act. The plan also includes 18.4 trillion naira in domestic debt and is intended to help finance an estimated budget deficit of 31.4 trillion naira, according to Bola Tinubu’s letter to the Senate president, dated 26 October.
The head of state said the government would consider several instruments, including concessional and commercial loans, taking their cost and mobilisation time into account. He said eurobond issues would be prioritised because they could be executed more quickly and raise large amounts, according to Punch.
The review comes after the loan request was submitted to Parliament on 26 October and as Nigeria sought a package of $21.7 billion in loans on 4 November. The request had also prompted opposition from former vice-president Atiku Abubakar, according to the $7.7 billion loan request.
