The Senate has approved President Bola Tinubu’s external borrowing plan of over $21 billion for the 2025–2026 fiscal cycle, paving the way for the full implementation of the 2025 Appropriation Act.
The comprehensive borrowing package includes $21.19bn in direct foreign loans, €4bn, ¥15bn, a $65m grant and domestic borrowing through government bonds totalling approximately ₦757bn.
Also a provision to raise up to $2bn through a foreign-currency-denominated instrument in the domestic market was included.
The approval comes after a report was presented by the Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako.
Wamako said that the plan was submitted to the National Assembly on May 27 first but was delayed due to legislative recess and documentation issues from the Debt Management Office.
The Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola, stated that most of the loan requests had already been featured into the Medium-Term Expenditure Framework and the 2025 budget.
He stated “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.”
At the senate on Tuesday during the approval, while many supported the move including Senator Sani Musa who clarified that the loan disbursement would span six years, not just 2025; some member’s raised concerns.
Musa emphasized that the borrowing was in line with global best practice.
Also, the chairman of the Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, supported the loan assuring the chamber that they are concessional and adhere to the Fiscal Responsibility Act and Debt Management Act.
According to him, the 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 highlighting the transparency of the loan noting that Nigerians deserve to know the specifics and their intended impact.
He told the chamber that Nigerians are entitled to the information on how much is being borrowed in their name and why.
The loan targets key sectors including infrastructure, agriculture, security, power, housing, and digital connectivity.
$3bn was allocated for the revitalisation of the Eastern Rail Corridor, stretching from Port Harcourt to Maiduguri.
In his remark, Senator Victor Umeh (Anambra Central) states that the rail project is a milestone.
According to him, this is the first time he has seen $3bn allocated to rebuild the eastern rail line. “That alone justifies my full support,” he added.
Deputy Senate President, Jibrin Barau, commended the committee’s efforts and stressed that the borrowing plan reflects national inclusiveness and a clear evidence that Tinubu’s Renewed Hope Agenda is working.
Senate leadership maintained that all funds must be deployed strictly for capital and development projects, in line with public finance regulations.
