The Nigerian Senate on Tuesday gave its approval to President Bola Tinubu’s massive external borrowing proposal worth over $21 billion, designed to fund critical infrastructure and development projects across the country during the 2025-2026 fiscal period.
The comprehensive financing package encompasses $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, plus a $65 million grant component, alongside ₦757 billion in domestic borrowing through government bonds. Additionally, the plan includes provisions for raising $2 billion through foreign-currency-denominated instruments within Nigeria’s domestic financial market.
Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, explained that the borrowing proposal had faced delays since its initial submission to the National Assembly on May 27, due to legislative recess and incomplete documentation from the Debt Management Office.
The approval effectively clears the path for full implementation of the 2025 Appropriation Act, with Senator Olamilekan Adeola, Chair of the Appropriations Committee, confirming that the borrowing requirements had already been integrated into the Medium-Term Expenditure Framework and the national 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 stated during deliberations.
Several senators defended the borrowing plan as consistent with international financial practices, with Senator Sani Musa clarifying that fund disbursement would occur over six years rather than being limited to 2025. “There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” Musa argued.
Senator Adetokunbo Abiru, Chair of the Senate Committee on Banking, Insurance and Other Financial Institutions, emphasized the concessional nature of the loans, describing them as long-term arrangements with tenors ranging from 20 to 35 years and strictly tied to capital and human development projects.
However, concerns about transparency emerged from Senator Abdul Ningi of Bauchi Central, who called for greater accountability in loan utilization. “We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he warned, urging the Senate to ensure proper oversight and disclosure.
The borrowing plan targets essential sectors including infrastructure development, agriculture, security enhancement, power generation, housing provision, and digital connectivity expansion across Nigeria.
A significant highlight of the package is the $3 billion allocation for revitalizing the Eastern Rail Corridor, spanning from Port Harcourt to Maiduguri. Senator Victor Umeh of Anambra Central praised this allocation, stating, “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 loan distribution as nationally inclusive, declaring that “the Renewed Hope Agenda is working” with no region excluded from the development benefits. He emphasized that all borrowed funds must be channeled strictly toward capital and developmental projects in accordance with existing public finance legislation.
