President Tinubu has gotten approval for fresh $21 billion foreign loan.
NewsOnline Nigeria reports that the Senate on Tuesday approved President Bola Tinubu’s external borrowing plan of over $21 billion for the 2025–2026 fiscal period, clearing the way for the complete implementation of the 2025 Appropriation Act.
The comprehensive 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 bonds.
The plan also provides for raising $2 billion through foreign-currency-denominated instruments within the domestic market.
ALSO: President Tinubu Holds Closed- Doors Meeting With Atiku, Others (FULL LIST)
Presenting the report, the Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, explained that the proposal, first submitted to the National Assembly on May 27, experienced delays due to the legislative recess and incomplete documentation from the Debt Management Office.
Senator Olamilekan Adeola, Chair of the Appropriations Committee, stressed that the borrowing request had already been factored into the Medium-Term Expenditure Framework (MTEF) and 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.
Despite the general support, Senator Abdul Ningi (Bauchi Central) expressed concerns about the transparency and equitable distribution of the loans.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he warned.
He urged the Senate to ensure proper oversight and disclosure to prevent misuse and regional imbalance.
The borrowing plan targets critical sectors, including infrastructure, agriculture, security, power, housing, and digital connectivity.
A standout item in the loan package is a $3bn allocation for the revitalisation of the Eastern Rail Corridor, which spans 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.
