The Nigerian Senate has approved President Bola Tinubu’s external borrowing plan of $21.5 billion for the 2025–2026 fiscal period, aimed at financing critical national development projects across key sectors.
Also approved were additional loan and grant requests, including 15 billion Japanese Yen, a €65 million grant, and the issuance of a ₦757 billion Federal Government bond to settle accrued pension rights under the Contributory Pension Scheme (CPS) as of December 2023.
The lawmakers further gave the green light for the federal government to raise up to $2 billion through a foreign-currency-denominated instrument in the domestic market, a move expected to bolster the implementation of the 2025 Appropriation Act.
The approvals followed the presentation of the report by the Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamakko (APC, Sokoto North). He emphasized that the borrowing requests were consistent with the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) earlier passed by the National Assembly.
Senate Appropriations Committee Chairman, Senator Solomon Adeola (APC, Ogun West), who seconded the motion, described the approval as a procedural step to ensure that all revenue sources—including loans—are in place for full budget execution.
Finance Committee Chairman, Senator Sani Musa (APC, Niger East), clarified that the borrowing plan covers a six-year disbursement period and aligns with global economic practices. “There’s no economy that grows without borrowing,” Musa said, stressing Nigeria’s solid loan repayment record.
Senator Adetokunbo Abiru (APC, Lagos East) assured that the loans are long-term and concessional, with favorable repayment terms stretching between 20 and 35 years, in compliance with the Fiscal Responsibility Act and the Debt Management Act.
However, Senator Abdul Ningi (PDP, Bauchi Central) raised concerns about the absence of clear repayment strategies and a detailed breakdown of how funds would be allocated across states and agencies. “We need to tell our constituents exactly how much is being borrowed in their name and for what purpose,” he said.
Offering a different perspective, Senator Victor Umeh (LP, Anambra Central) strongly backed the plan, noting that $3 billion has been earmarked for the rehabilitation of the Eastern rail line—a major infrastructural boost for the region.
Presiding over the session, Deputy Senate President Jibrin Barau (APC, Kano North) commended the committee’s work and reiterated that all funds from the borrowing plan must be channeled strictly into capital and developmental projects.
He added, “This shows that the Renewed Hope Agenda is working. No region is left out.”
With the approvals secured, the federal government is now set to commence full implementation of the 2025 budget.
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