Senate Approves Tinubu’s $21bn Foreign Loan Request

The Senate has approved an external borrowing plan exceeding $21 billion for the 2025–2026 fiscal period, enabling the full implementation of the 2025 national budget.

The approved borrowing includes $21.19 billion in foreign loans, €4 billion, ¥15 billion, a $65 million grant, and approximately ₦757 billion in domestic bonds. It also authorizes the issuance of a $2 billion foreign-currency-denominated instrument in the local market.

The approval followed the presentation of a report by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt. He explained that the proposal, initially submitted on May 27, was delayed due to the legislative recess and incomplete documentation from the Debt Management Office.

Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola, stated that the proposed loans were already incorporated into the Medium-Term Expenditure Framework and the 2025 Appropriation Act.

“With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” Adeola said.

While the motion passed with majority support, it also drew scrutiny. Senator Sani Musa clarified that the disbursement of the loans would be spread over six years, not confined to a single fiscal cycle.

“There is no economy that grows without borrowing. What we are doing aligns with global best practices,” Musa said.

Senator Adetokunbo Abiru, Chair of the Senate Committee on Banking, Insurance and Other Financial Institutions, reassured that the loans are concessional, long-term, and aligned with national legislation.

“These funds are strictly for capital and human development projects, with repayment periods ranging from 20 to 35 years,” he said.

However, Senator Abdul Ningi raised concerns over transparency and equitable distribution of the loans. He stressed the need for clarity on how the funds would be used.

“Nigerians deserve to know how much is being borrowed in their name and what it’s meant for,” he said.

Key sectors expected to benefit from the loans include infrastructure, agriculture, power, housing, security, and digital connectivity. A notable highlight is the $3 billion earmarked for the reconstruction of the Eastern Rail Corridor, stretching from Port Harcourt to Maiduguri.

Senator Victor Umeh praised the rail investment, saying, “This is the first time I’ve seen such a significant amount allocated to the eastern rail line. That alone justifies my full support.”

Deputy Senate President Jibrin Barau commended the committee’s work, noting that the borrowing plan reflects national inclusiveness.

“This shows the Renewed Hope Agenda is being implemented with all regions in mind,” Barau said.

The Senate emphasized that all funds must be used solely for capital and development projects in compliance with public finance regulations.