By Ayomide Otitoju
The Nigerian Senate has approved President Bola Ahmed Tinubu’s external borrowing plan totaling over $21 billion for the 2025–2026 fiscal cycle, a move expected to bolster implementation of the 2025 Appropriation Act and support key developmental initiatives.
The borrowing package, as reported by iReporter Online, includes $21.19 billion in external loans, €4 billion in European credit, and ¥15 billion from Asian lenders. The plan also incorporates a $65 million grant, ₦757 billion in domestic borrowing via government bonds, and an additional $2 billion to be raised through foreign-currency-denominated instruments within the Nigerian market.
Presenting the report, Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, noted that the proposal—initially submitted on May 27—was delayed due to a legislative recess and pending inputs from the Debt Management Office.
Senator Olamilekan Adeola, Chair of the Senate Appropriations Committee, emphasized that the borrowing plan aligns with the Medium-Term Expenditure Framework (MTEF) and is embedded within the 2025 budget.
Widespread legislative support accompanied the approval. Senator Sani Musa said the loans would be disbursed over six years, adding that strategic borrowing is necessary for national development. Senator Tokunbo Abiru, Chair of the Senate Committee on Banking, Insurance, and Other Financial Institutions, stressed that the loans are concessional, legally compliant, and earmarked for capital and human development projects with repayment terms of 20 to 35 years.
Despite the support, Senator Abdul Ningi of Bauchi Central raised concerns over transparency, urging lawmakers to ensure effective oversight. “We must be transparent with our constituents,” he said.
Key sectors targeted under the borrowing plan include infrastructure, agriculture, security, energy, housing, and digital connectivity. A highlight is the allocation of $3 billion for the revitalization of the Eastern Rail Corridor linking Port Harcourt and Maiduguri.
Senator Victor Umeh of Anambra Central described the rail project as a long-awaited milestone for regional equity. Deputy Senate President Jibrin Barau commended the debt committee for crafting a borrowing framework that aligns with the government’s Renewed Hope Agenda and prioritizes development-focused expenditures.
