Senate Approves Tinubu’s $21 Billion Foreign Loan Request
Senate Approves Tinubu’s $21 Billion Foreign Loan Request
On Tuesday, the Senate approved President Bola Tinubu’s plan to borrow over $21 billion in foreign loans for the 2025–2026 fiscal year, clearing the way for the full implementation of the 2025 Appropriation Act.
The borrowing package includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million grant, and domestic borrowing through government bonds amounting to approximately N757 billion.
Additionally, the plan allows for raising up to $2 billion through a foreign-currency-denominated instrument in the domestic market.
The approval came after Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt, presented a report explaining that the borrowing plan was initially submitted to the National Assembly on May 27 but was delayed due to the legislative recess and pending documentation from the Debt Management Office.
Senator Sani Musa clarified that the loan disbursement would span six years, not just 2025.
He defended the borrowing, saying it aligned with global economic practices.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said.
Senator Adetokunbo Abiru, who chairs the Committee on Banking, Insurance and Other Financial Institutions, assured the chamber that the loans are concessional and adhere to the Fiscal Responsibility Act and 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.
However, Senator Abdul Ningi (Bauchi Central) voiced concerns over transparency and equitable distribution, warning that Nigerians deserved to know the specifics of the loans and their intended impact.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said.
The loan plan prioritizes key sectors such as infrastructure, agriculture, security, power, housing, and digital connectivity.
A notable highlight is the allocation of $3 billion for the revitalization of the Eastern Rail Corridor, which runs from Port Harcourt to Maiduguri.
Senator Victor Umeh (Anambra Central) praised the rail project, stating, “This is the first time I have seen $3 billion dedicated to rebuilding the eastern rail line. That alone earns my full support.”
Deputy Senate President Jibrin Barau commended the committee’s work and emphasized that the borrowing plan demonstrates national inclusiveness. “This shows that the Renewed Hope Agenda is delivering. No region has been left behind,” he said.
Senate leadership also stressed that all borrowed funds must be strictly used for capital and development projects, in accordance with public finance regulations.
