The Nigerian Senate has approved President Bola Tinubu’s request to secure over $21 billion in external loans as part of a comprehensive borrowing plan for the 2025–2026 fiscal period.
The approval, granted during plenary on Tuesday, aims to fund national development projects across sectors including infrastructure, security, agriculture, and human capital development.
Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, presented the long-awaited report, initially introduced on May 27, 2025. Legislative delays, including recesses and the slow release of documentation from the Debt Management Office (DMO), had stalled its passage.
The borrowing package includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, and a $65 million grant. Additionally, it features ₦757 billion in domestic borrowing through government bonds and a provision to raise $2 billion via foreign-currency-denominated instruments within the domestic market.
Senator Olamilekan Solomon, Chairman of the Senate Committee on Appropriations, clarified that the borrowing plan is already factored into the 2025 Budget and Medium-Term Expenditure Framework (MTEF), describing the approval as a procedural step.
“All revenue sources, including loans, are now in place to fully fund the 2025 Appropriation Act,” he said.
While the plan received broad support, it also raised concerns. Senator Sani Musa (Niger East) defended the initiative, stating it spans six years and aligns with global economic practices. He noted that Nigeria has maintained a strong loan repayment record.
“There’s no economy that grows without borrowing,” Musa said.
Senator Adetokunbo Abiru (Lagos East), Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, assured the chamber that the loans comply with both the Fiscal Responsibility Act and the Debt Management Act. He emphasized that the funds are for capital projects and human development, with concessional terms and long repayment periods ranging from 20 to 35 years.
However, Senator Abdul Ningi (Bauchi Central) expressed skepticism, citing a lack of transparency in the plan’s implementation. He called for detailed breakdowns to show what each state or agency stands to receive and how repayment would be handled.
“Our constituents deserve to know how much is being borrowed in their name and for what purpose,” Ningi said.
Key projects listed in the borrowing plan include the Eastern Railway Line from Port Harcourt to Maiduguri, digital connectivity expansion, power generation facilities, security operations, housing, and agricultural development.
Senator Victor Umeh (Anambra Central) welcomed the inclusion of $3 billion for rebuilding the Eastern rail line, saying it represented a long-overdue investment in the region’s infrastructure.
Deputy Senate President Jibrin Barau praised the inclusiveness of the loan plan, stating it reflects the goals of the Renewed Hope Agenda.
“No region is left out. The entire nation is being carried along,” Barau said.
The Senate leadership reiterated that all borrowed funds must be applied strictly to capital and developmental initiatives in line with national financial laws.
