Abuja — The Senate on Tuesday approved President Bola Tinubu’s external borrowing plan of $21.5 billion for the 2025–2026 period, following the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko (APC–Sokoto).
According to the report presented at plenary, the loan request is aimed at funding critical national development projects across key sectors of the economy.
Also approved was a separate loan request amounting to 15 billion Japanese Yen and a €65 million grant.
In addition, the Senate authorised the issuance of a Federal Government Bond worth ₦757 billion to settle accrued pension rights arrears under the Contributory Pension Scheme (CPS) as of December 2023.
The Senate further approved Tinubu’s request to raise up to $2 billion through a foreign currency-denominated instrument within the domestic market.
Wamakko explained that the loan requests were part of the already approved Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) underpinning the 2025 budget.
He noted that most items contained in the borrowing plans had already been captured in those frameworks.
Senator Solomon Adeola (APC–Ogun), who seconded the motion, described the approval as largely procedural, noting that the borrowing provisions were already embedded in the 2025 Appropriation Act.
Adeola, who chairs the Senate Committee on Appropriations, stated, “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.”
Senator Sani Musa (APC–Niger) clarified that the borrowing plan covers a six-year disbursement timeline and not just the 2025 fiscal year. He also emphasised that Nigeria has maintained a consistent record of loan repayment.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” Musa said.
Supporting the plan, Senator Adetokunbo Abiru (APC–Lagos) stressed that the loan requests complied with both the Fiscal Responsibility Act and the Debt Management Act, stating that the funds would be directed towards capital projects and human development.
“These loans are long-term, concessional, and come with favourable repayment terms. Some have tenors between 20 and 35 years,” he noted.
However, Senator Abdul Ningi (PDP–Bauchi) raised reservations, noting the committee’s report lacked sufficient detail on loan repayment strategies and disbursement allocations to states or agencies.
He expressed concern about the implications for constituents.
“We need to tell our constituents exactly how much is being borrowed in their name and for what purpose,” Ningi said, citing constitutional provisions on borrowing oversight.
In contrast, Senator Victor Umeh (LP–Anambra) welcomed the plan, particularly its focus on infrastructure in the eastern region.
“This is the first time I’ve seen $3 billion allocated to rebuild the eastern rail line. That alone justifies my full support,” Umeh said.
Deputy Senate President Jibrin Barau (APC–Kano), who presided over the session, praised the committee’s work and described the approved plan as inclusive of all regions.
“This shows that the Renewed Hope Agenda is working; no region is left out. With the borrowing plan now approved, implementation of the 2025 Appropriation Act can begin in full,” Barau said.
He added that all disbursed funds must be used strictly for capital and developmental projects, in accordance with laws governing public finance.
