In a significant move to fund Nigeria’s critical infrastructure and development needs, the Senate has approved President Bola Tinubu’s external borrowing request totaling $21.5 billion for the 2025–2026 fiscal cycle. The approval, which includes various loan and grant components, is expected to facilitate the full execution of the 2025 national budget.
Alongside the $21.5 billion borrowing plan, the Senate also gave the green light for a 15 billion Japanese Yen loan and a €65 million grant. Additionally, the lawmakers endorsed the issuance of a Federal Government Bond worth N757 billion to settle accrued pension arrears under the Contributory Pension Scheme (CPS) as of December 2023.
Further approvals include a capital raise of up to $2 billion via foreign-currency-denominated instruments in the domestic market—an initiative aimed at strengthening Nigeria’s financial capacity amid global economic pressures.
The approvals came following the presentation of a report by Senator Aliyu Wamakko (APC, Sokoto North), Chairman of the Senate Committee on Local and Foreign Debts. He noted that the loans had been factored into the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) already passed by the National Assembly as part of the 2025 Appropriation Act.
Backing the motion, Senator Solomon Adeola (APC, Ogun West), Chairman of the Senate Committee on Appropriations, stated:
“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, emphasized the multi-year nature of the borrowing plan, covering a six-year period rather than just 2025. He reassured Nigerians that the country had not defaulted on existing loan repayments, adding:
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices.”
Senator Adetokunbo Abiru (APC, Lagos East) added that the loans comply with both the Fiscal Responsibility Act and the Debt Management Act, noting that most were concessional, long-term loans with repayment windows between 20 to 35 years.
However, not all senators were fully on board. Senator Abdul Ningi (PDP, Bauchi Central) raised concerns about the lack of clear repayment plans and how the borrowed funds would directly impact the lives of constituents. He urged the Senate to demand greater transparency on fund utilization.
In contrast, Senator Victor Umeh (LP, Anambra Central) strongly backed the approval, citing the inclusion of a $3 billion allocation for the rebuilding of the eastern rail corridor.
“This is the first time I’ve seen such a significant commitment to the eastern region. That alone justifies my full support,” he said.
Deputy Senate President Jibrin Barau (APC, Kano North), who presided over the session, applauded the committee’s efforts and assured that no region was left out of the development plans.
“This shows that the Renewed Hope Agenda is working,” he said. “With the borrowing plan now approved, implementation of the 2025 Appropriation Act can begin in full.”
The development marks a major step toward financing national infrastructure, social programs, and capital projects that the Tinubu administration says are central to its economic transformation strategy.
