Senate Approves Tinubu’s $21bn Foreign Loan Plan

The Senate on Tuesday gave the green light to President Bola Tinubu’s external borrowing proposal worth over $21 billion for the 2025–2026 fiscal period, enabling full execution of the 2025 Appropriation Act.

The borrowing package comprises $21.19 billion in foreign loans, €4 billion, ¥15 billion, a $65 million grant, and domestic borrowing through government bonds estimated at about ₦757 billion. It also allows the government to raise an additional $2 billion through a foreign-currency-denominated instrument within the domestic market.

The approval followed a report presented by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt. He explained that the plan, initially submitted on May 27, had been delayed by the National Assembly’s recess and documentation issues from the Debt Management Office.

Senator Olamilekan Adeola, Chair of the Appropriations Committee, noted that most of the borrowing had already been captured in the Medium-Term Expenditure Framework and 2025 budget.

“With this approval, all projected revenue sources, including loans, are now in place to fully finance the 2025 budget,” Adeola said.

Details and Reactions

Senator Sani Musa clarified that the loans would be disbursed over six years rather than in a single fiscal year, adding that borrowing was necessary for economic growth.

“There is no thriving economy without borrowing. This is consistent with global best practices,” Musa stated.

Senator Adetokunbo Abiru, Chairman of the Banking and Insurance Committee, assured lawmakers that the loans comply with the Fiscal Responsibility Act and Debt Management Act, stressing they were concessional and tied to critical development projects, with tenors of 20–35 years.

However, Senator Abdul Ningi expressed concerns over transparency and equitable allocation, insisting Nigerians deserved full disclosure of the borrowing terms and their impact.

“We owe our constituents clear information on how much is borrowed in their name and for what projects,” he warned.

Key Projects

The loan package targets strategic sectors such as infrastructure, security, agriculture, power, housing, and digital connectivity.

A major highlight is the $3 billion earmarked for rehabilitating the Eastern Rail Corridor, linking Port Harcourt to Maiduguri.

Senator Victor Umeh hailed the move, saying, “This is the first time such a significant amount has been allocated to the eastern rail line. That alone earns my full support.”

Deputy Senate President Jibrin Barau praised the inclusive nature of the borrowing plan, describing it as evidence that the Renewed Hope Agenda is on track.

“This demonstrates national inclusiveness; no region is left out,” he said.

Senate leaders stressed that all borrowed funds must be utilized strictly for capital and development projects in compliance with public finance rules.