Tinubu Seeks $20.5bn, €1.04bn Loans, Atiku, ADC Raise the Alarm

President Bola Tinubu has asked the National Assembly to approve new foreign borrowing for projects and programmes planned for 2026–2027. The request covers $20,517,755,901 and €1,045,083,643. He says the money is needed to address infrastructure gaps, sustain economic growth and support services nationwide.

The plan would cover infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms. Tinubu also wants lawmakers to approve the establishment and expansion of a Promissory Note Programme to settle N269.44 billion in outstanding verified federal government liabilities.

The request has already triggered political criticism. Atiku Abubakar alleged that the borrowing could become a campaign slush fund and demanded project-by-project disclosure. The ADC Presidential Campaign Council called the proposal reckless and warned that foreign debt could mortgage Nigeria’s future. The Senate referred the borrowing plan to its debt committee for a one-week review.

The proposed borrowing is unusually large and split between two currencies. Tinubu’s letter gives the dollar component as $20,517,755,901 and the euro component as €1,045,083,643. The article also rounds these figures in its headline to $20.5 billion and €1.04 billion.

The money is tied to a supplementary external borrowing plan for 2026–2027. It would finance projects and programmes across infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms. Most projects, the president said, would operate across Nigeria’s 36 states and the Federal Capital Territory.

The plan still requires National Assembly approval. The Senate referred it to its debt committee and gave the committee one week to report. Critics are challenging the scale and transparency of the proposal, while Tinubu argues that infrastructure needs and financing gaps make broader external borrowing necessary.

External borrowing is government financing obtained from lenders outside the country. It can involve foreign governments, international institutions or overseas financial markets. By contrast, domestic borrowing raises money inside Nigeria, often through local banks or investors and usually in naira. The article identifies Tinubu’s proposal as external borrowing because it is denominated in dollars and euros.

The currency matters. A government receiving dollars or euros must repay according to the loan agreement, including any interest. If the naira loses value against those currencies, the naira cost of repayment can rise. Domestic borrowing avoids that particular foreign-currency exposure, although it can create other costs, such as competing with private borrowers for local funds.

The article does not identify the proposed lenders, interest rates or repayment schedules. It says the plan would close a financing shortfall and support projects nationwide. Those missing terms will matter when lawmakers assess the borrowing’s affordability and risks.

The proposed borrowing would finance a broad group of public sectors rather than a single project. Tinubu highlighted infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms. He also said power, transportation and healthcare would receive particular attention.

The government’s stated mechanism is investment in projects and programmes that can support growth and improve living conditions. Tinubu said the projects underwent technical and economic assessments. He expects them to stimulate economic activity, create jobs, promote skills acquisition, encourage entrepreneurship, reduce poverty and strengthen food security.

Most of the projects would be implemented across Nigeria’s 36 states and the Federal Capital Territory. The article does not provide a project-by-project list, budget allocation or delivery timetable. That gap is central to Atiku Abubakar’s criticism, as he demanded detailed disclosure and questioned whether the borrowing could be used for political purposes.

Governments generally need legislative approval before taking on major sovereign debt because borrowing commits future public revenues. Parliamentary review gives elected representatives a chance to examine the amount, purpose, affordability and conditions of proposed loans. It also creates a public record and a check on executive spending.

In this case, Tinubu sent the borrowing request to the National Assembly, and Senate President Godswill Akpabio read it during plenary. The Senate then referred the supplementary plan to its debt committee and gave it one week to report. That process allows lawmakers to assess the proposed $20.52 billion and €1.045 billion facilities before approval.

The article does not spell out the precise constitutional or statutory rule requiring approval. It does show that the president sought approval rather than announcing the borrowing as completed. The debate also gives lawmakers a chance to examine project details, debt risks and the separate N269.44 billion Promissory Note Programme.

Foreign borrowing gives the government money now but creates obligations for the future. Nigeria would generally repay the principal and interest under each loan agreement. Those payments would compete with spending on public services and future projects. The larger the debt, the more carefully government must manage its annual budget and repayment capacity.

Exchange rates add another risk. The proposed facilities are stated in dollars and euros, while much government revenue is collected in naira. If the naira falls against either currency, the government would need more naira to buy the foreign currency required for repayment. Interest costs could also rise if the agreements use variable rates, though the article does not state whether they do.

The article provides no lender names, interest rates, maturities or repayment schedule. Therefore, the exact financial impact cannot be measured from the text. Critics warn that excessive foreign borrowing could mortgage Nigeria’s future, while Tinubu argues the financing is needed to close infrastructure and development gaps.

Public borrowing can strengthen growth by funding infrastructure that the government cannot quickly finance from current revenue. Better power, transport, healthcare, water systems and education can help businesses operate, connect markets and improve household welfare. Construction and related projects can also create employment during delivery.

Tinubu says the proposed projects were selected after technical and economic assessments. He expects them to stimulate economic activity, generate jobs, promote skills and entrepreneurship, reduce poverty and strengthen food security. These are the benefits that could justify borrowing, but a worthwhile loan also needs sound costs, realistic delivery plans and manageable repayment terms.

The article does not provide project-level costs, expected returns or loan conditions. That makes it impossible to judge value for taxpayers yet. The National Assembly’s review, including the debt committee’s report, could test whether the proposed investments close real infrastructure gaps and produce benefits greater than their foreign-currency debt burden.