The Senate has approved President Bola Tinubu’s external borrowing plan of over $21 billion for the 2025–2026 fiscal period, clearing the path for full implementation of the 2025 Appropriation Act.
The borrowing package includes $21.19 billion in foreign loans, €4 billion, ¥15 billion, a $65 million grant, and domestic bond issues amounting to ₦757 billion.
It also provides for raising an additional $2 billion through foreign-currency-denominated instruments within Nigeria.
The approval came after the Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, presented a report detailing the proposal.
He noted that the loan request was initially sent to the National Assembly on May 27 but experienced delays due to the legislative recess and incomplete documentation from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Appropriations Committee, explained that the loans had already been factored 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 stated.
While the borrowing plan received broad Senate support, it also sparked debate.
Senator Sani Musa stressed that disbursements would be spread over six years and justified the borrowing approach.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he argued.
Backing the plan, Senator Adetokunbo Abiru, Chairman of the Committee on Banking, Insurance and Other Financial Institutions, reassured lawmakers that the loans met all statutory guidelines.
“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,” he noted.
However, concerns were raised about transparency and accountability.
Senator Abdul Ningi (Bauchi Central) urged the Senate to ensure Nigerians are fully informed.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he cautioned.
Key sectors earmarked for the loans include infrastructure, agriculture, security, power, housing, and digital connectivity.
A standout allocation is the $3 billion set aside for the revitalization of the Eastern Rail Corridor from Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) lauded the move, saying, “This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support.”
Deputy Senate President Jibrin Barau commended the committee’s work and emphasized national inclusion.
“This shows that the Renewed Hope Agenda is working. No region is left out,” he declared.
The Senate leadership concluded that all borrowed funds must be applied exclusively to capital and development projects, in compliance with public finance laws.
