Eight days after President Bola Tinubu\u2019s request to borrow US$20.52 billion and \u20ac1.05 billion was read on the Senate floor, the Senate received a fresh proposal on 4 November 2026 for approximately \u20a610.79 trillion, equivalent to US$7.7 billion.<\/p>\n\n\n\n
Senate President Godswill Akpabio said the new proposal superseded the earlier request. Lawmakers must now establish the terms and purpose of the revised borrowing proposal before deciding whether to approve it.<\/p>\n\n\n\n
Their decision will test whether the National Assembly is prepared to exercise independent judgment over borrowing commitments that Nigerians will continue to repay long after the present administration and legislature have left office.<\/p>\n\n\n\n
Two Requests, Unresolved Questions<\/strong><\/p>\n\n\n\n The earlier proposal concerned the 2026 \u2013 2027 Supplementary External Borrowing Rolling Plan, which was read in the Senate on 27 October 2026 and sought approval for US$20.52 billion and \u20ac1.05 billion to finance infrastructure and other development projects.<\/p>\n\n\n\n The subsequent request, which Senate President Godswill Akpabio said superseded the earlier proposal, concerns external financing for the 2026 budget deficit. According to the presidential communication, the approved budget provides for approximately \u20a629.2 trillion in new borrowing, comprising \u20a618.4 trillion domestically and \u20a610.79 trillion externally.<\/p>\n\n\n\n A multi-year programme of project financing and an annual budget\u2019s external financing requirement are different borrowing arrangements, even where some of the projects or facilities overlap. The announcement that the latter request supersedes the former one leaves unanswered which projects have been retained, deferred, or removed, and whether some facilities appear in both proposals.<\/p>\n\n\n\n The latest letter was reportedly dated 26 October 2026, a day before the earlier proposal was read in the Senate. The Presidency should provide a written reconciliation of the two requests, explaining why the earlier proposal was still presented to the Senate and whether the latest letter was intended to withdraw the rolling plan, revise it, or seek a separate approval. Both chambers should expressly establish the status of the earlier proposal and publish the scope and terms of the borrowing now being sought.<\/p>\n\n\n\n This information should be included in the relevant committee’s report and made available to lawmakers before they vote. A borrowing commitment of this scale should be decided on the basis of clearly established terms and scope, not an interpretation offered from the presiding officer’s chair.<\/p>\n\n\n\n A Troubling Record of Accelerated Approvals<\/strong><\/p>\n\n\n\n The National Assembly\u2019s handling of recent borrowing requests gives Nigerians reason to demand a more searching examination.<\/p>\n\n\n\n In October 2025, the House of Representatives approved approximately US$2.35 billion, comprising new borrowing and the refinancing of maturing Eurobonds, alongside a separate international sovereign Sukuk proposal. During consideration, Deputy Majority Leader, Abdullahi Halims, sought to have the report stepped down for further scrutiny, but the request proceeded to approval.<\/p>\n\n\n\n Although fresh borrowing and refinancing carry different implications, both require lawmakers to understand the costs and obligations they are authorising.<\/p>\n\n\n\n On 31 March 2026, the National Assembly approved approximately US$6 billion in external financing on the same day the presidential requests were reportedly received. The package included a structured total return swap financing programme of up to US$5 billion with First Abu Dhabi Bank. A financing arrangement of this nature warrants close examination of its collateral requirements, foreign exchange exposure, and potential payment obligations, particularly given the scale of the commitment.<\/p>\n\n\n\n Although the approvals were made on the same day, the speed of the process alone does not establish that scrutiny was absent. However, same-day approval of complex financing makes it especially important for the National Assembly to publish the evidence examined, the risks identified, and the reasons for its decision.<\/p>\n\n\n\n The Senate Committee on Local and Foreign Debts and the Joint Committees on Aids, Loans and Debt Management and Finance, which are handling the latest loan request, have an important role in its scrutiny. Committee referral is only the beginning of scrutiny, and its value depends on the questions asked, the documents tested, and the conditions imposed.<\/p>\n\n\n\n Budget Approval Does Not Settle the Borrowing Terms<\/strong><\/p>\n\n\n\n Including borrowing in an Appropriation Act does not relieve the National Assembly of its duty to examine the terms of each financing arrangement. While appropriation authorises spending and provides a framework for financing that expenditure, it does not establish that a particular loan is affordable, its terms acceptable, or the proposed instrument offers value for money.<\/p>\n\n\n\n Section 21(1) of the Debt Management Office (Establishment, etc.) Act requires the terms and conditions of an external loan to be presented to and approved by the National Assembly through a resolution before the Minister obtains or approves the loan.<\/p>\n\n\n\n Section 44(1) of the Fiscal Responsibility Act also requires a borrowing government or agency to specify the purpose of the borrowing and present a cost-benefit analysis detailing its economic and social benefits. General promises about infrastructure, employment, and development cannot substitute for evidence showing how particular investments justify their costs.<\/p>\n\n\n\n Although final pricing for market borrowing may depend on conditions at the time of issuance, this makes clear approval conditions essential. Lawmakers should examine the proposed instruments, indicative costs, repayment periods, fees and risk exposure, and establish the limits within which the Executive may proceed. The government should explain how its proposed approval process satisfies the statutory requirements.<\/p>\n\n\n\n The Burden Extends Beyond the Headline Amount<\/strong><\/p>\n\n\n\n As of June 2026, Nigeria\u2019s combined public debt, covering the Federal Government, States, and the Federal Capital Territory, stood at approximately \u20a6166.79 trillion. Changes in the naira value of external debt also reflect exchange rate movements, as well as additional borrowing.<\/p>\n\n\n\n The IMF\u2019s 2026 assessment projected Federal Government interest payments at 53.7 per cent of Federal Government revenue. This figure relates to interest payments alone, not total debt service, which also includes principal repayments. It nevertheless illustrates the pressure borrowing costs place on public finances, leaving a smaller share of government revenue available to meet obligations.<\/p>\n\n\n\n Borrowing can support productive investment, expand infrastructure, and improve public services, but its justification depends on the benefits delivered, the financing cost, and the capacity to repay. Where projects are poorly selected, delayed, or left incomplete, citizens inherit repayment obligations without receiving the promised gains.<\/p>\n\n\n\n The argument that external borrowing can strengthen reserves and support the naira also needs careful treatment. Loan proceeds may temporarily improve foreign exchange liquidity, but they create future foreign currency obligations. A reserve increase financed by debt must be assessed alongside the liabilities incurred and the repayment schedule.<\/p>\n\n\n\n What Lawmakers Should Require Before Voting<\/strong><\/p>\n\n\n\n Before approving the latest loan request, the National Assembly should insist on a public account of the proposed borrowing.<\/p>\n\n\n\n First, the Presidency should clarify the relationship between the two requests and reconcile them with earlier approvals, including the facilities approved in March 2026. The reconciliation should distinguish between amounts authorised, agreements signed, funds disbursed, and outstanding balances. An approval does not establish that a loan has been obtained, just as obtaining a loan does not establish that the funds have been spent.<\/p>\n\n\n\n Second, the relevant committees should publish the project and financing schedules, together with the supporting cost-benefit assessments. Citizens should be able to identify the projects, implementing agencies, proposed lenders or instruments, expected costs and intended results.<\/p>\n\n\n\n Third, lawmakers should hold public hearings with the Finance Ministry, Debt Management Office, Budget Office and implementing ministries. The examination should test repayment capacity against weaker revenue, exchange rate depreciation and higher financing costs. A comparison with available alternatives should support any preference for Eurobonds or commercial facilities.<\/p>\n\n\n\n Fourth, approval should distinguish project loans, general budget financing, refinancing and complex structured facilities. Each should receive scrutiny appropriate to its purpose and risks. Unsupported components should be deferred.<\/p>\n\n\n\n Finally, the legislature should publish its committee findings, and any approval should require regular reporting on financing terms, disbursements, expenditure and project delivery. Oversight must continue after the resolution is passed.<\/p>\n\n\n\n A Vote Nigerians Should Be Able to Judge<\/strong><\/p>\n\n\n\n The National Assembly has the power to approve, reject or require changes to the President\u2019s request. Its responsibility is to demonstrate why its decision serves the public interest. A smaller headline figure does not resolve uncertainty about the borrowing programme, nor does inclusion in the budget settle questions about affordability, financing terms, or project value.<\/p>\n\n\n\n Before authorising further debt, lawmakers should establish what Nigeria is borrowing, what it will cost, what it will deliver, and how it will be repaid. Their votes should be recorded, visible, and their reasons should withstand public examination.<\/p>\n\n\n\n Nigerians deserve a National Assembly that can account for every borrowing approval it grants.<\/p>\n","protected":false},"excerpt":{"rendered":" Eight days after President Bola Tinubu\u2019s request to borrow US$20.52 billion and \u20ac1.05 billion was read on the Senate floor, the Senate received a fresh proposal on 4 November 2026 for approximately \u20a610.79 trillion, equivalent to US$7.7 billion. Senate President Godswill Akpabio said the new proposal superseded the earlier request. 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