The Nigerian Senate has approved President Bola Tinubu’s sweeping external borrowing plan totalling more than $21 billion for the 2025–2026 fiscal period, setting the stage for the full implementation of the 2025 Appropriation Act.
The package—described as one of the most extensive in recent years—includes $21.19bn in direct foreign loans, €4bn, ¥15bn, and a $65m grant. It also comprises approximately ₦757bn in domestic borrowing via government bonds and authorises the issuance of up to $2bn through a foreign-currency instrument within Nigeria’s domestic market.
The approval followed a report presented by Senator Aliyu Wamakko, chair of the Senate Committee on Local and Foreign Debt, who explained that legislative delays and incomplete documentation from the Debt Management Office had stalled the request, first submitted to the National Assembly in May.
Senator Olamilekan Adeola, chair of the Appropriations Committee, noted that the loans had already been built into both the Medium-Term Expenditure Framework and the 2025 budget.
“With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” Adeola stated.
While most senators backed the proposal, citing developmental needs and international precedent, others raised red flags over transparency and the long-term burden on citizens.
Senator Sani Musa defended the borrowing, clarifying that disbursement would span six years rather than being concentrated in 2025. “There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said.
Senator Adetokunbo Abiru, chair of the Banking, Insurance and Financial Institutions Committee, added that the loans were concessional and adhered to the Fiscal Responsibility and Debt Management Acts. “These loans are long-term, some with tenors of up to 35 years, and are strictly tied to capital and human development projects,” he said.
However, Senator Abdul Ningi (Bauchi Central) questioned the opacity surrounding the terms and beneficiaries of the borrowing, insisting that Nigerians must be informed about “how much is being borrowed in their name and for what purpose.”
The borrowing plan earmarks funds for infrastructure, agriculture, security, power, housing, and digital connectivity. One of the most notable allocations is $3bn for the long-neglected Eastern Rail Corridor, connecting Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) welcomed the development. “This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support,” he said.
Deputy Senate President Jibrin Barau praised the committee’s work and said the plan reflected national balance. “This shows that the Renewed Hope Agenda is working. No region is left out,” he asserted.
Senate leaders concluded by emphasising that all borrowed funds must be channelled strictly into capital projects, in accordance with public finance laws.
