The Senate has approved President Bola Tinubu’s request to secure external loans totaling over $21 billion for the 2025–2026 fiscal period, a move aimed at supporting the full execution of the 2025 Appropriation Act.
The approved borrowing framework includes $21.19 billion in direct external loans, €4 billion, ¥15 billion, a $65 million grant, and domestic borrowing through government bonds amounting to about ₦757 billion.
It also authorizes the issuance of a foreign-currency-denominated instrument worth up to $2 billion within the domestic market.
The green light came after Senator Aliyu Wamakko, Chair of the Senate Committee on Local and Foreign Debt, presented a report detailing the proposal.
He noted that the request was initially sent to the National Assembly on May 27 but faced delays due to legislative recess and documentation gaps from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Senate Appropriations Committee, explained that much of the loan had already been accounted for in the Medium-Term Expenditure Framework and the 2025 budget.
“With this approval, we’ve secured all necessary funding sources loans included to finance the 2025 budget,” he said.
While the approval received majority support, a few lawmakers raised concerns about transparency. Senator Sani Musa clarified that the loan package is structured to be disbursed over a six-year period, not solely within 2025.
He defended the borrowing, noting it aligns with international economic standards. “No economy grows without borrowing. This is consistent with global best practices,” he stated.
Chairman of the Senate Banking Committee, Senator Adetokunbo Abiru, added that the loans are concessional, tied to development projects, and comply with the Fiscal Responsibility and Debt Management Acts. “These are long-term loans with repayment periods of up to 35 years,” he noted.
However, Senator Abdul Ningi (Bauchi Central) expressed concerns about equitable allocation and public accountability. “Nigerians need clarity on how much is being borrowed on their behalf and how it will be used,” he said.
The loan package targets key sectors including infrastructure, agriculture, power, security, housing, and digital connectivity. A major component is a $3 billion allocation for revamping the Eastern Rail Corridor from Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) praised the railway investment, calling it historic. “This is the first time $3 billion is earmarked for reconstructing the eastern rail line. That alone earns my full support,” he said.
Deputy Senate President Jibrin Barau commended the committee’s diligence, highlighting the plan’s national inclusivity. “This demonstrates the inclusiveness of the Renewed Hope Agenda. Every region is represented,” he said.
The Senate emphasized that all funds must be strictly applied to capital and developmental projects, in accordance with public finance laws.
Advertisement
