Federal Government Set To Borrow N30.12 Trillion

Federal Government Set To Borrow N30. 12 Trillion

 

 

OpenLife News reports that the Federal Government is set to borrow a fresh $20.5 billion and €1.04 billion foreign loans to fund infrastructure and development projects across the country.

President Bola Tinubu has written to the Senate seeking approval for a supplementary external borrowing plan totalling $20.52 billion and €1.045 billion for the 2026–2027 fiscal period.

The President’s letter was addressed to the President of the Senate, Senator Godswill Akpabio, and read on Tuesday during plenary.

According to Tinubu, the proposed borrowing is necessary to bridge Nigeria’s infrastructure funding gap, sustain economic growth, generate employment and improve living conditions.

He said the plan cuts across critical sectors including power, transportation, agriculture, healthcare, education, water supply, security and financial management reforms.

“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,” Tinubu said.

He put the total facility at $20,517,755,901 and €1,045,083,643, noting that projects and programmes under the plan were selected after thorough technical and economic evaluation.

“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.

Tinubu said the initiatives are expected to generate employment, promote skills acquisition, foster entrepreneurship, reduce poverty and enhance food security.

“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,” he said.

The President explained that most of the projects will be executed across the 36 states and the Federal Capital Territory, stressing that the nationwide spread is intended to address development needs across the federation.

“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 added that the funds will primarily be directed towards critical infrastructure projects in power, transportation and healthcare, among other sectors.

“These funds will primarily be directed towards critical infrastructure projects in various sectors, including power, transportation and healthcare, amongst others,” Tinubu said.

The President urged the National Assembly to give the plan urgent consideration to enable timely release of funds and implementation.

“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 to fulfil its obligations to the Nigerian people through timely disbursements and effective project implementation,” he said.

Following the reading of the letter, Senate President Akpabio referred the request to the Senate Committee on Local and Foreign Debts for further legislative action, with a directive to report back 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 did not provide a detailed project-by-project breakdown, specific financing terms or amount earmarked for each sector.

The National Assembly’s consideration is expected to focus on the proposed financing and its development objectives, including closing infrastructure gaps, stimulating economic activities and improving public services.

The conversion rate based on today’s FX rate, Tuesday, October 27, 2026

Official rate today:
– Dollar: N1,367.61 / $1
– Euro: N1,529.79 / €1 b6e566c5

The Federal Government request is:
$20,517,755,901 + €1,045,083,643

Naira equivalent

– Dollar component: $20.517bn x N1,367.61 = ~N28.06 trillion
– Euro component: €1.045bn x N1,529.79 = ~N1.60 trillion

TOTAL = ~N29.66 Trillion at official CBN/NFEM rate.

At parallel market rate of N1,390 / $ and N1,530 / €:

– $20.517bn = N28.51trn
– €1.045bn = N1.60trn
– TOTAL = ~N30.12 Trillion

So the new borrowing plan is roughly N29.6 – N30.1 trillion