Tinubu Seeks Reps’ Approval for $7.7bn External Loan to Finance 2026 Budget

​President Bola Tinubu has formally requested the House of Representatives to approve the Federal Government’s plan to raise $7.7 billion (approximately N10.79 trillion) through external loans to bridge part of the 2026 budget deficit.

​According to the communication sent to Speaker Tajudeen Abbas, the legislative authorization does not introduce a fresh borrowing proposal. Instead, it seeks to fulfill statutory requirements under Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which mandate the National Assembly to vet and approve the terms and conditions governing external borrowings. The total 2026 Appropriation Act outlines new borrowings of N29.218 trillion, split between N18.28 trillion from domestic sources and N10.79 trillion from external windows. The administration intends to prioritize Eurobond issuances due to faster processing times and favorable market rates.

​Concurrently, the House of Representatives has raised alarms over the continuous decline in health sector funding, adopting a motion of urgent public importance moved by Patrick Umoh. Lawmakers highlighted that the proposed 2026 health budget accounts for merely 4.2 percent of total expenditure—falling far short of the 15 percent benchmark set by the 2001 Abuja Declaration and dropping from 5.14 percent in 2025.

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​The parliament warned that severe infrastructure decay, frequent power outages, and the ongoing brain drain of medical professionals threaten specialist healthcare and training nationwide. In response, the House mandated its Committee on Health Institutions to collaborate with relevant ministries, the Budget Office, and hospital managements to establish an emergency revitalization fund.