NASS Approves $6.9bn Foreign Loan, 2026 Budget Hiked to ₦67.4 Trillion

The National Assembly has approved President Bola Tinubu’s request for a $6.9 billion foreign loan facility, with a key condition that 40 per cent of the funds must finance capital projects in the 2025/2026 budgets. This followed a Senate Committee on Local and Foreign Debt report recommending the allocation to ensure direct support for infrastructure and development.

President Tinubu simultaneously proposed a ₦9 trillion increase to the 2026 Appropriation Bill, raising the total budget from ₦58.4 trillion to ₦67.4 trillion. In his letter read by Senate President Godswill Akpabio, Tinubu stated the adjustment aims to strengthen fiscal transparency and implement priority programmes. The plan covers outstanding legal commitments from previous budgets, consolidates government indebtedness, and funds strategic projects while aligning with macro-fiscal stability.

Key budget figures include ₦5.41 trillion (9.3%) for defence and security, total revenue projected at ₦34.33 trillion, and a deficit of ₦23.85 trillion (4.28% of GDP). The 2026–2028 Medium-Term Framework relies on a $64.85/barrel oil benchmark, 1.84 million barrels daily production, and a ₦1,400/$ exchange rate. The President emphasized commitment to debt transparency and value-for-money spending.

This significant borrowing and budget expansion will test Nigeria’s fiscal discipline. The 40% capital projects mandate could boost infrastructure if well-executed, but also raises debt sustainability concerns. Citizens should monitor which specific projects receive funding in their regions and track implementation through the Budget Office of the Federation. How will you engage local representatives to ensure these funds translate into tangible roads, hospitals, or schools in your community?

SOURCE: https://www.channelstv.com/2026/03/31/nass-approves-tinubus-6-9bn-foreign-loan-request/