Tinubu Seeks NASS Approval For $20.5bn, €1.45bn Supplementary Borrowing Plan

President Bola Ahmed Tinubu has formally written to the National Assembly seeking legislative approval for the Federal Government’s 2026–2027 supplementary external borrowing plan, valued at $20.5 billion and €1.45 billion.

According to the executive communication, the multi-billion-dollar credit facilities are earmarked to finance major national infrastructure projects, agricultural expansion, educational development, and critical economic sectors in alignment with the administration’s economic priorities.

The latest loan request comes amid escalating debate among financial analysts, opposition figures, and civic groups regarding the administration’s fiscal strategy and the nation’s rising public debt profile.

Earlier in April, the Federal Government expanded its planned deficit financing for 2026 by ₦11.31 trillion to ₦29.20 trillion, alongside a projected fiscal deficit of ₦31.46 trillion and projected debt-servicing allocations of ₦15.81 trillion.

Critical voices continue to question the government’s persistent reliance on foreign and domestic loans despite the total removal of the fuel subsidy, which was projected to unlock significant fiscal savings for capital development.

Reacting to previous borrowing requests, the presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, warned that the nation was sliding toward a severe debt crisis, highlighting unverified contractor liabilities and slow capital project execution despite subsidy removal gains.

Similarly, the Emir of Kano, Muhammadu Sanusi II, questioned why public debt accumulation has continued unchecked post-subsidy, insisting that citizens ought to see tangible improvements in public financial management and social infrastructure.

Defending the administration’s fiscal position, the Minister of Finance, Taiwo Oyedele, rejected assertions that the government had added ₦80 trillion to the debt stock in three years, explaining that exchange rate adjustments following naira devaluation and the integration of existing liabilities accounted for much of the statistical rise rather than fresh loans alone.

The National Assembly had previously authorized a $2.347 billion external loan package in October 2025 to cover budget deficits and refinance maturing Eurobond obligations, alongside a $500 million sovereign sukuk aimed at critical transport projects.

While economic experts acknowledge that targeted capital borrowing can stimulate productivity and infrastructure growth when properly deployed, significant public concern persists regarding debt sustainability, transparency, and execution efficiency.