The Senate on Tuesday, July 22, gave the green light to President Bola Tinubu’s request to borrow over $21 billion for the 2025–2026 fiscal period.
The approval aims to enable full execution of the 2025 Appropriation Act.
The borrowing plan covers $21.19 billion in external loans, €4 billion, ¥15 billion, a $65 million grant, and domestic borrowing of approximately ₦757 billion through government bonds.
It also includes a provision to raise $2 billion via foreign-currency-denominated instruments in the local market.
Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, presented the report and explained that the proposal was first sent to the National Assembly on May 27, but review was delayed due to legislative recess and incomplete documents from the Debt Management Office.
Senator Olamilekan Adeola, who heads the Appropriations Committee, said the borrowing had already been built into the 2025 budget framework.
“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 stated.
Senator Sani Musa noted that the disbursement would take place over six years, not within a single fiscal year.
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“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” Musa said.
Senator Adetokunbo Abiru, Chairman of the Banking, Insurance and Other Financial Institutions Committee, added that the loans are concessional and compliant with fiscal laws.
“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,” Abiru explained.
Despite broad support, Senator Abdul Ningi raised transparency concerns.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said.
Key sectors listed in the plan include infrastructure, agriculture, security, power, housing, and digital technology. Notably, $3 billion is earmarked for reviving the Eastern Rail Corridor from Port Harcourt to Maiduguri.
Senator Victor Umeh described the rail investment as historic. “This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support,” Umeh said.
Deputy Senate President Jibrin Barau praised the inclusive nature of the proposal. “This shows that the Renewed Hope Agenda is working. No region is left out,” he said.
Senate leaders emphasised that all borrowed funds must be used solely for capital and development projects, in line with public finance rules.