The Nigerian Senate has granted approval for President Bola Tinubu’s external borrowing proposal, amounting to over $21 billion, intended to support the 2025–2026 fiscal agenda.
According to reports, the green light from lawmakers clears the path for the full implementation of the 2025 Appropriation Act, which relies heavily on both foreign and domestic borrowing to bridge funding gaps.
The approved borrowing plan comprises:
- $21.19 billion in direct foreign loans
- €4 billion and ¥15 billion in additional foreign currencies
- A $65 million grant
- Domestic borrowing through government bonds, totaling roughly ₦757 billion
Additionally, the framework includes a proposal to raise $2 billion via a foreign-currency-denominated instrument within the domestic market.
The approval followed a report presented by Senator Aliyu Wamako, Chair of the Senate Committee on Local and Foreign Debt. He revealed that the borrowing plan had initially been sent to the National Assembly on May 27, but faced delays due to a legislative break and outstanding documentation from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, clarified that many of the loan components had already been integrated into the Medium-Term Expenditure Framework (MTEF) 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.
This approval marks a significant fiscal step for the Tinubu administration as it seeks to mobilize resources for critical development projects and close the funding gap in Nigeria’s next fiscal cycle.
