The Senate on Tuesday gave its approval to President Bola Tinubu’s external borrowing plan totaling over $21 billion, a move designed to support the full implementation of the 2025 Appropriation Act.
The borrowing plan, which spans the 2025–2026 fiscal period, includes:
- $21.19 billion in direct foreign loans
- €4 billion and ¥15 billion
- A $65 million grant
- ₦757 billion in domestic borrowing via government bonds
- An additional $2 billion to be raised through foreign-currency-denominated instruments in the domestic market
The approval followed the presentation of a report by Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debts. He noted that the proposal was initially submitted on May 27 but faced delays due to the National Assembly recess and documentation challenges from the Debt Management Office (DMO).
Senator Olamilekan Adeola, Chairman of the Appropriations Committee, explained that the loans were already incorporated into the Medium-Term Expenditure Framework (MTEF) and the 2025 national budget.
“With this approval, all revenue streams—including loans—are now in place to ensure full funding of the 2025 budget,” Adeola said.
Lawmakers Defend the Borrowing Plan
Senator Sani Musa clarified that the loan disbursement would extend over a six-year period, not just within 2025. He described the borrowing as a necessary strategy aligned with global economic practices.
“No economy grows without borrowing. This is consistent with international standards,” he stated.
Senator Adetokunbo Abiru, Chair of the Committee on Banking, Insurance, and Other Financial Institutions, assured that the loans are concessional, with terms ranging from 20 to 35 years, and are strictly tied to capital and human development projects.
“These loans comply with the Fiscal Responsibility Act and Debt Management Act. They are not arbitrary,” Abiru added.
Concerns Over Transparency and Equity
Despite wide support, some lawmakers expressed concern about accountability and equitable distribution.
Senator Abdul Ningi (Bauchi Central) cautioned that Nigerians deserve full transparency regarding the size, purpose, and expected impact of the loans.
“We must explain to our constituents how much is being borrowed in their name and how it will benefit them,” he warned.
Key Projects and Sectoral Allocations
The borrowing package targets critical sectors, including:
- Infrastructure
- Power and energy
- Agriculture
- Security
- Housing
- Digital economy
A standout project under the plan is the $3 billion allocation for the revitalisation of the Eastern Rail Corridor, which stretches from Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) praised the initiative:
“This is the first time I’ve seen $3 billion set aside to rebuild the eastern rail line. That alone earns my full support.”
Inclusive Development Emphasized
Deputy Senate President Jibrin Barau commended the committee’s diligence and emphasized that the loan plan reflects national inclusiveness.
“This shows the Renewed Hope Agenda is in action. Every region is being carried along,” Barau said.
Senate leadership reiterated that the approved funds must be strictly used for capital and developmental projects, in line with public financial management regulations.
