The Nigerian Senate today approved President Bola Tinubu’s ambitious external borrowing plan, totaling over $21 billion for the 2025–2026 fiscal cycle. This decisive approval clears the path for the full implementation of the 2025 Appropriation Act, providing crucial funding for a range of critical projects across the nation.
The comprehensive borrowing package includes $21.19 billion in direct foreign loans, €4 billion, and ¥15 billion, alongside a $65 million grant. The plan also incorporates domestic borrowing through government bonds amounting to approximately ₦757 billion and a provision to raise up to $2 billion via a foreign-currency-denominated instrument in the domestic market.
Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, presented the report, noting that the plan was initially submitted on May 27 but faced delays due to a legislative recess and documentation issues from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, highlighted that most of the loan requests were already integrated into the Medium-Term Expenditure Framework and the 2025 budget. “The borrowing is already embedded in the 2025 Appropriation Act. With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” Adeola explained.
While the approval received broad support, it also sparked some concerns. Senator Sani Musa clarified that the loan disbursement would span six years, not just 2025, and defended the borrowing as consistent with global economic practices. “There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he stated.
Senator Adetokunbo Abiru, Chairman of the Committee on Banking, Insurance and Other Financial Institutions, assured the Senate that the loans are concessional and comply with the Fiscal Responsibility Act and Debt Management Act. He emphasized, “These loans are long-term, some with tenors ranging from 20 to 35 years, and they are strictly tied to capital and human development projects.”
However, Senator Abdul Ningi (Bauchi Central) raised concerns regarding transparency and equitable distribution, urging that Nigerians be fully informed about the specifics of the loans and their intended impact. “We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” Ningi asserted.
Key sectors targeted in the loan plan include infrastructure, agriculture, security, power, housing, and digital connectivity. A significant allocation of $3 billion is earmarked for the revitalization of the Eastern Rail Corridor, which stretches from Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) lauded the rail project as a significant achievement. “This is the first time I have seen $3 billion allocated to rebuild the eastern rail line. That alone justifies my full support,” he stated.
Deputy Senate President, Jibrin Barau, commended the committee’s work, emphasizing that the borrowing plan reflects national inclusiveness. “This shows that the Renewed Hope Agenda is working. No region is left out,” he remarked.
The Senate leadership reiterated that all funds must be strictly used for capital and development projects, in adherence to public finance regulations.
