Tinubu Seeks Approval for $20.52bn Foreign Loans, ₦269.44bn Promissory Notes

President Bola Tinubu has asked the National Assembly to approve a supplementary external borrowing plan worth $20.52 billion and €1.045 billion, alongside a separate ₦269.44 billion Promissory Note Programme to settle verified outstanding government liabilities.

The borrowing request was read by Senate President Godswill Akpabio during plenary on Tuesday. The proposed foreign financing covers the 2026–2027 fiscal period and is intended to fund infrastructure and development projects across the country.

According to the President’s letter, the proposed facilities amount to $20,517,755,901 and €1,045,083,643. The funds are expected to support projects in power, transportation, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms.

Tinubu said the proposed projects had undergone technical and economic assessments and were selected based on their expected contributions to national development. He argued that additional external financing was necessary to address Nigeria’s infrastructure deficit, support economic growth and create employment opportunities.

The President also said most of the projects would be implemented across Nigeria’s 36 states and the Federal Capital Territory. He urged lawmakers to consider the request promptly, arguing that early approval would facilitate fund disbursement and accelerate implementation.

However, the letter presented to the Senate did not contain a detailed breakdown of the proposed financing by project or sector, nor did it specify the individual loan terms. The Senate referred the request to its Committee on Local and Foreign Debts, which was asked to report back within one week, with possible input from other relevant committees.

Alongside the borrowing request, Tinubu is seeking legislative approval to establish and expand the Federal Government’s Promissory Note Programme to settle verified outstanding liabilities totalling ₦269,446,402,822.56.

The request was conveyed in a letter from the Secretary to the Government of the Federation, George Akume. According to the letter, dated August 18, 2026, and received by the Office of the Speaker on October 21, the liabilities followed a review by relevant ministries, departments and agencies.

The proposed programme is intended to settle outstanding contractual, project-related and other financial obligations owed to various creditors. The government said only claims that have been verified and validated would qualify, subject to final reconciliation and certification by the relevant agencies.

Akume explained that the arrangement could help limit the further accumulation of interest, penalties and other costs associated with unpaid obligations. He also said it would provide a structured approach to settling legitimate claims without placing an immediate and disproportionate burden on government cash flow.

The request seeks authority for the issuance of promissory notes worth ₦269.44 billion, or another amount approved by the National Assembly. It also seeks authorisation for the Minister of Finance, working with the Debt Management Office and other relevant agencies, to implement the programme.

Both requests now require legislative consideration. The external borrowing plan would provide financing for proposed development projects, while the promissory note programme is intended to address previously incurred obligations. Their eventual approval, financing terms and implementation arrangements will determine how the proposals affect government spending and public debt management.