The Nigerian Senate has approved President Bola Tinubu’s request for a comprehensive external borrowing plan totaling over $21 billion for the 2025–2026 fiscal years. The funds are intended to finance key national development projects across vital sectors, including infrastructure, security, agriculture, and human capital development.
During a plenary session in Abuja on Tuesday, the Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, presented the report for approval. He noted that the delay in adopting the plan, which was first introduced on May 27, 2025, was due to parliamentary recesses and challenges in obtaining necessary documentation from the Debt Management Office (DMO).
The approved borrowing package includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, and a $65 million grant. Additionally, the plan incorporates domestic borrowing through government bonds amounting to approximately ₦757 billion to offset pension arrears and allows for raising up to $2 billion through foreign-currency-denominated instruments in the domestic market.
Senator Olamilekan Solomon Adeola, Chairman of the Senate Committee on Appropriations, clarified that the approval was largely procedural, as most components of the borrowing plan were already integrated into the Medium-Term Expenditure Framework (MTEF) and the 2025 Appropriation Act previously passed by the Senate. He emphasized that this approval ensures all revenue sources, including loans, are in place to fully fund the budget.
The decision drew mixed reactions among lawmakers. Senator Sani Musa defended the plan, stating that it covers a six-year disbursement period, not just 2025, and that Nigeria has consistently met its existing loan repayments. Senator Adetokunbo Abiru added that the loans are long-term, concessional, and comply with both the Fiscal Responsibility Act and the Debt Management Act, with repayment tenors ranging from 20 to 35 years. However, Senator Abdul Ningi raised concerns about transparency and accountability, calling for clearer explanations to constituents about the purpose of the borrowed funds.
The borrowing plan is set to fund critical national infrastructure projects such as railways (including the Eastern Rail Line from Port Harcourt to Maiduguri), power plants, digital connectivity, security operations, agriculture, and housing. Senator Victor Umeh expressed strong support, particularly for the allocation of $3 billion to rebuild the eastern rail line, highlighting its positive impact on the South-East region. Deputy Senate President Jibrin Barau affirmed that the approval reflects the "Renewed Hope Agenda" and ensures no region is excluded from development. The Senate leadership stressed that all disbursed funds must be utilized strictly for capital and developmental projects in adherence to public finance laws.
