The Senate approved President Bola Tinubu’s external borrowing plan of more than $21 billion for the fiscal years 2025-2026 on Tuesday, clearing the way for the full implementation of the 2025 Appropriations Act.
The borrowing package includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million gift, and around ₦757 billion in domestic borrowing through government bonds.
A provision was also included for raising up to $2 billion in the domestic market using a foreign-currency-denominated instrument.
Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, presented a report indicating that the plan was initially submitted to the National Assembly on May 27 but was delayed due to legislative recess and documentation issues with the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, stated that most loan requests were already accounted for in the Medium-Term Expenditure Framework and 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.
Senator Sani Musa stated that the loan would be disbursed over a six-year period rather than only in 2025.
He defended the borrowing, saying it is consistent with worldwide economic principles.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said.
Senator Adetokunbo Abiru, chairman of the Committee on Banking, Insurance, and Other Financial Institutions, told the chamber that the loans are concessional and comply with the Fiscal Responsibility Act and the 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.
Senator Abdul Ningi (Bauchi Central) expressed concerns about transparency and equitable distribution, saying 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.
The loan plan focuses on key sectors such as infrastructure, agriculture, security, power, housing, and digital connectivity.
A major highlight is the allocation of $3 billion for the revitalisation of the Eastern Rail Corridor, which runs from Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) praised the train project as a watershed moment, adding, “This is the first time I have seen $3 billion allocated to rebuild the eastern rail line.” That alone justifies my unwavering support.”
Jibrin Barau, Deputy Senate President, praised the committee’s efforts and stated that the borrowing plan symbolises national inclusion.
“This shows that the Renewed Hope Agenda is working. No region is left out,” he said.
The leadership of the Senate maintained that all funds must be deployed strictly for capital and development projects, in line with public finance regulations.
