The Nigerian Senate has approved President Bola Tinubu’s request for an external borrowing plan totaling $21.5 billion for the 2025–2026 fiscal period, aimed at financing key development projects across critical sectors of the economy.
Also approved were:
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A loan request of 15 billion Japanese Yen,
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A €65 million grant, and
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The issuance of ₦757 billion in Federal Government Bonds for the settlement of accrued pension rights under the Contributory Pension Scheme (CPS) as of December 2023.
Furthermore, the Senate gave the green light for capital raising of up to $2 billion through a foreign-currency denominated instrument in Nigeria’s domestic market.
Part of MTEF and 2025 Budget Framework
The approvals followed the presentation of a report by the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wamakko (APC, Sokoto North).
Senator Wamakko explained that the loan requests had already been factored into the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) earlier passed for the 2025 budget.
Lawmakers Speak on Borrowing Justification
Senator Solomon Adeola (APC, Ogun West), Chairman of the Senate Committee on Appropriations, who seconded the motion, said:
“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.”
Senator Sani Musa (APC, Niger East), Chairman of the Senate Committee on Finance, clarified that the loans would be disbursed over a six-year period, not just within the 2025 fiscal year.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he stated, noting that Nigeria has not defaulted on any previous repayments.
Senator Adetokunbo Abiru (APC, Lagos East) also threw his support behind the plan, assuring that the borrowing complies with the Fiscal Responsibility Act and the Debt Management Act:
“These loans are long-term, concessional and come with favorable repayment terms. Some stretch between 20 and 35 years,” he said.
Concerns Over Repayment Details
However, Senator Abdul Ningi (PDP, Bauchi Central) raised concerns over the lack of clarity in the report regarding repayment strategies. He emphasized the need for transparency in how the loans would be used to benefit Nigerians.
Meanwhile, Senator Victor Umeh (LP, Anambra Central) expressed enthusiastic support for the plan, particularly citing the $3 billion allocation to rehabilitate the eastern rail corridor.
“This is the first time I’ve seen such a sum allocated to the eastern rail line. That alone justifies my full support,” Umeh said.
Senate Leadership’s Position
In his closing remarks, Deputy Senate President Jibrin Barau (APC, Kano North), who presided over the session, commended the committee’s efforts and reassured the public that no region was excluded from the benefits of the borrowing plan.
“This shows that the Renewed Hope Agenda is working. With the borrowing plan now approved, the implementation of the 2025 Appropriation Act can begin in full,” Barau declared.
