- Tinubu’s $21 Billion External Loan Gets Senate Approval
- Several senators supported the borrowing plan
- Adeola noted that the borrowing request had already been included in the Medium Term Expenditure Framework
The Senate on Tuesday approved President Bola Tinubu’s external borrowing plan, amounting to over $21 billion for the 2025 and 2026 fiscal years. This approval paves the way for full implementation of the 2025 Appropriation Act.
Eko Hot Blog reports that the comprehensive borrowing package includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million grant, and ₦757 billion in domestic borrowing through government-issued bonds.
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The plan also allows for an additional $2 billion to be raised through foreign currency-denominated instruments within the domestic financial market.
Presenting the report, Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, explained that the proposal was initially submitted to the National Assembly on May 27. Its consideration was delayed due to the legislative recess and incomplete documentation from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Appropriations Committee, noted that the borrowing request had already been included in the Medium Term Expenditure Framework and reflected in the 2025 budget.
“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,” Adeola said.
Several senators supported the borrowing plan, insisting that it aligns with international financial practices.
Senator Sani Musa clarified that the disbursement would not be limited to 2025 but would span six years, adding, “There’s no economy that grows without borrowing. What we are doing is in line with global best practices.”
In the same vein, Senator Adetokunbo Abiru, Chair of the Senate Committee on Banking, Insurance and Other Financial Institutions, described the loans as concessional and compliant with the Fiscal Responsibility Act and the Debt Management Act.
“These loans are long-term, some with tenors ranging from 20 to 35 years, and they are strictly tied to capital and human development projects,” he said.
While the borrowing plan received broad support, Senator Abdul Ningi, representing Bauchi Central, raised concerns regarding transparency and the fair distribution of the loans.
He stressed the importance of accountability, saying, “We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose.”
Senator Ningi called on the Senate to ensure robust oversight and full disclosure to avoid mismanagement and regional disparities in project allocation.
The approved borrowing plan is aimed at supporting key sectors such as infrastructure, agriculture, security, power, housing, and digital connectivity.
One of the major highlights of the package is a $3 billion provision dedicated to the revitalisation of the Eastern Rail Corridor, which stretches from Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) praised the move, stating, “This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support.”
Deputy Senate President, Jibrin Barau, commended the Committee on Local and Foreign Debt for its thorough work, describing the loan distribution as nationally inclusive.
“This shows that the Renewed Hope Agenda is working. No region is left out,” Barau declared.
He emphasised that all funds must be channelled strictly towards capital and developmental projects, in accordance with public finance laws.
