The Nigerian Senate has approved President Bola Tinubu’s external borrowing plan for the 2025–2026 fiscal year, totaling $21.19 billion in foreign loans, supplemented by €4 billion, ¥15 billion, and a €65 million grant.
Additionally, a domestic bond issuance of approximately ₦758 billion and up to $2 billion via a foreign currency, denominated instrument were ratified to support the national budget.
Senate Committee Chair, Senator Aliyu Wamakko, presented the borrowing plan, originally submitted on May 27, explaining that delays were due to parliamentary recess and pending documentation from the Debt Management Office. Senator Solomon Adeola, Chair of Appropriations, clarified that the loans were already embedded within the Medium-Term Expenditure Framework and the Appropriation Act, stating:
“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.”
Senator Sani Musa emphasised the economy’s need for borrowing, noting the six-year disbursement timeline and affirming Nigeria’s compliance with global standards:
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices.”
READ ALSO: Rep pass bill to ban political officials from using private hospitals, schools
Senator Adetokunbo Abiru assured members that the loans comply with the Fiscal Responsibility and Debt Management Acts and that funds are strictly for capital projects:
“These loans are long‑term, concessional, and come with favourable repayment terms. Some have tenors ranging from 20 to 35 years.”
However, PDP’s Abdul Ningi raised concerns over transparency, stating:
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose.”
A standout allocation in the loans is $3 billion for the Eastern Rail Corridor reconstruction from Port Harcourt to Maiduguri—a target praised by Senator Victor Umeh as a historic investment.
Senate Deputy Leader Jibrin Barau echoed the national inclusivity of the plan, saying it reflects President Tinubu’s “Renewed Hope Agenda” and ensures every region benefits.
This approval comes amid rising public debt over ₦121 trillion total and more than $43 billion in external debt prompting critics to argue that debt servicing consumes the bulk of federal revenue. Meanwhile, business leaders and civil society, such as the Lagos Chamber of Commerce & Industry and Transparency International, have expressed concerns about debt sustainability and fiscal transparency
Reuters adds that the Senate’s approval followed implementation of Tinubu’s economic reforms removal of fuel subsidies and naira devaluation, which have spurred inflation and living costs. The loan is seen as a fiscal stimulus tool to plug budget gaps