The Senate has approved President Bola Tinubu’s external borrowing plan of $21.5 billion for the 2025–2026 fiscal period.
This approval followed the presentation of the report by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, during Tuesday’s plenary session, according to the News Agency of Nigeria (NAN).
The Senate also gave the green light to additional financial instruments, including a loan request of 15 billion Japanese Yen and a €65 million grant.
In a further step to address pension liabilities, the Senate approved the issuance of a Federal Government Bond worth ₦757 billion to settle accrued rights pension arrears under the Contributory Pension Scheme (CPS) as of December 2023.
Additionally, lawmakers endorsed President Tinubu’s request to raise up to $2 billion through a foreign currency-denominated instrument in the domestic market.
According to Wamakko, the loan requests align with items already outlined in the approved Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the 2025 budget. He noted that the committee found the borrowing plan consistent with national development priorities and thus recommended its approval.
While several senators backed the move, citing legal and developmental justifications, others raised concerns about transparency and accountability.
Senator Solomon Adeola, who seconded the motion, argued that the approval was a procedural step since the borrowing plan was already incorporated into the 2025 Appropriation Act.
“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,” he said.
Senator Sani Musa added that the borrowing would be disbursed over a six-year period and noted that Nigeria had not defaulted on existing loan obligations.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he stated.
Also supporting the motion, Senator Adetokunbo Abiru said the requests comply with the Fiscal Responsibility Act and Debt Management Act, and were targeted at capital and human development initiatives.
“These loans are long-term, concessional, and come with favorable repayment terms. Some stretch between 20 and 35 years,” he noted.
However, Senator Abdul Ningi voiced serious reservations about the lack of transparency in the borrowing plan. He criticised the committee’s report for failing to provide details on the loan repayment strategy and specific project allocations.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said, stressing constitutional obligations for legislative oversight.
On the other hand, Senator Victor Umeh strongly backed the plan, citing regional equity in project allocations.
“This is the first time I’ve seen three billion dollars allocated to rebuild the eastern rail line. That alone justifies my full support,” he said.
Presiding over the session, Deputy Senate President Jibrin Barau praised the committee’s work and affirmed the inclusivity of the borrowing plan.
“This shows that the Renewed Hope Agenda is working; no region is left out. With the borrowing plan now approved, implementation of the 2025 Appropriation Act can begin in full,” Barau declared.
He also stressed that all disbursed funds must be used strictly for capital and development projects, in accordance with public finance laws.
What You Should Know
In May 2025, President Tinubu formally requested Senate approval for the $21.5 billion external borrowing as part of the broader 2025–2026 financing framework.
As of March 31, 2025, Nigeria’s total public debt had risen to ₦149.39 trillion — a ₦27.72 trillion or 22.8% increase compared to the ₦121.67 trillion recorded during the same period in 2024.