On Tuesday, the Senate approved President Bola Tinubu’s external borrowing plan exceeding $21 billion for the 2025–2026 fiscal period, enabling the full execution of the 2025 Appropriation Act.
The approved package includes $21.19 billion in external loans, €4 billion, ¥15 billion, a $65 million grant, and domestic borrowing through government bonds estimated at ₦757 billion. It also allows for the issuance of up to $2 billion in foreign-currency-denominated instruments within the domestic market.
The Senate’s approval followed the presentation of a report by Senator Aliyu Wamako, Chairman of the Committee on Local and Foreign Debt. He noted that the plan was originally submitted on May 27 but faced delays due to the National Assembly’s recess and incomplete documentation from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Appropriations Committee, emphasized that the loans had already been factored into the Medium-Term Expenditure Framework and the 2025 national budget.
“With this approval, all revenue sources—loans included—are now in place to fully fund the budget,” he stated.
While the borrowing plan received broad support, some lawmakers raised concerns about transparency and implementation.
Senator Sani Musa clarified that the loan disbursement would be spread over six years, not limited to 2025. He defended the borrowing, describing it as consistent with international economic norms.
“No economy can grow without borrowing. What we’re doing aligns with global best practices,” he argued.
Senator Adetokunbo Abiru, Chairman of the Committee on Banking, Insurance and Other Financial Institutions, assured that the loans are concessional and compliant with both the Fiscal Responsibility Act and the Debt Management Act.
“These are long-term loans—some with repayment periods of 20 to 35 years—and are strictly tied to capital and human development projects,” he explained.
However, Senator Abdul Ningi (Bauchi Central) expressed reservations, stressing the need for transparency and equitable distribution.
“Nigerians need to know exactly how much is being borrowed on their behalf, and for what purpose,” he said.
The borrowing plan targets key sectors including infrastructure, agriculture, security, power, housing, and digital connectivity. A major component is a $3 billion allocation for the revitalization of the Eastern Rail Corridor, which spans from Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) praised the rail project, saying, “This is the first time I’ve seen a $3 billion commitment to rebuild the eastern rail line. That alone earns my full support.”
Deputy Senate President Jibrin Barau commended the committee’s work and emphasized that the plan reflects national inclusivity.
“This demonstrates that the Renewed Hope Agenda is working—no region is being left behind,” he said.
Senate leaders stressed that all borrowed funds must be used strictly for capital and development projects, in accordance with public finance laws.