Senate approves Tinubu’s $21bn loan plan for 2025–2026
The Senate has approved President Bola Tinubu’s $21 billion external borrowing plan for the 2025–2026 fiscal years, despite growing concerns over Nigeria’s rising debt profile.
The approval followed the consideration of a report by the Senate committee on local and foreign debt, presented by its chairman, Senator Aliyu Wamakko, during Tuesday’s plenary.
According to the committee, the loans will fund major national development projects across sectors such as infrastructure, security, agriculture, and human capital development.
The borrowing package includes: $21.19 billion in direct foreign loans, €4 billion (euros), ¥15 billion (Japanese yen), $65 million grant
Additional domestic borrowing via government bonds worth ₦757 billion and capital raising of up to $2 billion through foreign-currency-denominated instruments in the domestic market.
Olamilekan Solomon, chair of the Senate committee on appropriations, said the approval was procedural, as the items had already been captured in the Medium-Term Expenditure Framework (MTEF) and the 2025 Appropriation Act.
“The borrowing is already embedded in the 2025 Appropriation Act,” he said.
“With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” he said.
But the decision drew mixed reactions on the floor.
Senator Sani Musa (Niger East) explained that the borrowing covers a six-year disbursement period and assured that Nigeria remains in good standing with all its creditors.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” Musa said.
Backing the plan, Senator Adetokunbo Abiru (Lagos East), chair of the Senate committee on banking, insurance and other financial institutions, said the loans are compliant with the Fiscal Responsibility Act and the Debt Management Act.
“These loans are long-term, concessional, and come with favourable repayment terms. Some have tenors ranging from 20 to 35 years,” Abiru added.
He said the funds are strictly designated for capital and human development projects.
However, Senator Abdul Ningi (Bauchi Central) raised red flags over the lack of transparency and clarity.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” Ningi said.
He questioned the absence of a detailed breakdown showing what each state or agency will receive and how repayment will be managed.
The borrowing plan includes funding for key national infrastructure such as: Railways — notably the Eastern Corridor from Port Harcourt to Maiduguri, Power generation and digital connectivity, Security operations and Agriculture and housing projects
With the plan approved, the federal government can now fully implement the 2025 budget.
Senate leadership stressed that all disbursed funds must be strictly used for developmental and capital projects, in line with public finance laws.
