Senate Approves $21.5b External Borrowing Plan For 2025–2026

The Nigerian Senate has approved President Bola Tinubu’s external borrowing plan of $21.5 billion for the 2025–2026 period to fund critical development projects across sectors such as infrastructure, security, education, health, agriculture, and human capital development.

The approval followed the presentation of a report by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt, during plenary in Abuja.

In addition to the main borrowing plan, the Senate also approved a loan of 15 billion Japanese Yen, a €65 million grant, and a domestic borrowing request of ₦757 billion through Federal Government Bonds to offset pension arrears as of December 2023.

Another request for capital raising of up to $2 billion through foreign-currency instruments in the domestic market was also endorsed.

Senator Wamakko noted that the loan requests align with the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) already approved for the 2025 budget.

Senator Solomon Adeola (APC-Ogun), who seconded the motion, emphasized that the borrowing was already factored into the 2025 Appropriation Act, stating: “With this approval, we now have all revenue sources, including loans, in place to fully fund the budget.”

Senator Sani Musa (APC-Niger) pointed out that the loan would be disbursed over six years and affirmed that Nigeria has maintained its loan repayment obligations.

Senator Adetokunbo Abiru (APC-Lagos) assured that the borrowing complied with the Fiscal Responsibility and Debt Management Acts, describing the terms as long-term, concessional, and favorable—some stretching up to 35 years.

However, Senator Abdul Ningi (PDP-Bauchi) raised concerns over the lack of a clear repayment plan and absence of a detailed breakdown of how the funds would be distributed or utilized by states and agencies.

In contrast, Senator Victor Umeh (LP-Anambra) backed the proposal, citing the $3 billion earmarked for the reconstruction of the eastern rail corridor as a key justification for his support.

Presiding over the session, Deputy Senate President Jibrin Barau (APC-Kano) praised the inclusive nature of the borrowing plan, stating it reflects the national reach of the Renewed Hope Agenda. He emphasized that all disbursed funds must be strictly used for capital and developmental projects in accordance with public finance laws.

James Itodo, Edited By Grace Namiji