The Senate on Tuesday approved President Bola Tinubu’s external borrowing plan exceeding \$21 billion for the 2025–2026 fiscal period, clearing the path for full execution of the 2025 Appropriation Act.
The borrowing plan comprises \$21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a \$65 million grant, and domestic borrowing via government bonds estimated at ₦757 billion.
It also includes a provision to raise up to \$2 billion through a foreign-currency-denominated instrument within the domestic market.
The approval came after the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wamako, presented its report. Wamako noted the proposal was initially submitted on May 27 but faced delays due to the legislative recess and incomplete documentation from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, added that most of the loan components were already captured in the Medium-Term Expenditure Framework and the 2025 budget.
“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,” Adeola explained.
While the approval drew broad support, it also raised concerns.
Senator Sani Musa clarified that the loan disbursement would span six years, not just 2025.
He defended the borrowing, saying it aligns with global economic practices.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said.
Senator Adetokunbo Abiru, who chairs the Committee on Banking, Insurance and Other Financial Institutions, assured the chamber that the loans are concessional and adhere to the Fiscal Responsibility Act and Debt Management Act.
“These loans are long-term, some with tenors ranging from 20 to 35 years, and they are strictly tied to capital and human development projects,” he said.
However, Senator Abdul Ningi (Bauchi Central) voiced concerns over transparency and equitable distribution, warning that Nigerians deserve to know the specifics of the loans and their intended impact.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said.
Among the key sectors targeted in the loan plan are infrastructure, agriculture, security, power, housing, and digital connectivity.
A major highlight is the allocation of $3bn for the revitalisation of the Eastern Rail Corridor, stretching from Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) hailed the rail project as a milestone, saying, “This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support.”
Deputy Senate President, Jibrin Barau, commended the committee’s efforts and stressed that the borrowing plan reflects national inclusiveness.
“This shows that the Renewed Hope Agenda is working. No region is left out,” he said.
Senate leadership maintained that all funds must be deployed strictly for capital and development projects, in line with public finance regulations.
