President Tinubu Seeks $20.5 Billion and €1.04 Billion Foreign Loan Approval

President Bola Ahmed Tinubu has asked the National Assembly to approve a fresh foreign loan of $20.52 billion and €1.04 billion. The request was contained in a letter read by Senate President Godswill Akpabio during Tuesday’s plenary session.

Donjoe Media gathered that the funds are needed for the 2026-2027 supplementary borrowing plan. According to the President, the loan will help the federal government close funding gaps and continue key projects across the country.

It was gathered that the request is coming less than 110 days to the 2027 general elections, a development that has sparked debate among Nigerians. Many citizens are questioning the timing of the request and how the money will be used.

As contained in the letter, the government plans to use the loan to fund critical sectors such as infrastructure, security, agriculture, health and education. President Tinubu noted that these sectors need urgent intervention to support economic growth and improve living conditions.

Financial experts say $20.52 billion is one of the largest single borrowing requests in recent times. The inclusion of €1.04 billion also adds a European component to the debt mix. If approved, the loans will have implications for exchange rates and debt servicing.

Following the reading of the letter, Akpabio referred the request to the Senate Committee on Local and Foreign Debts. The committee was given one week to review the details and report back to the Senate for further action.

The federal government has defended the plan, saying it is needed to complete abandoned road projects, improve the power grid and upgrade the railway system. Officials added that part of the money will support farmers, equip security agencies and renovate hospitals and schools.

However, some economists and civil society groups have expressed concern over Nigeria’s rising debt profile. They are calling on the government to cut wasteful spending and ensure transparency in how borrowed funds are used.

President Tinubu recently spoke at the 32nd Nigerian Economic Summit about his administration’s efforts to reform the economy. He said his government is working to rewrite Nigeria’s story of slow growth through investment in productive sectors.

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By Jonadab Oluikpe