The foreign borrowing plan of about $21 billion of President Bola Tinubu was on Tuesday approved by the Senate following the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debt, Mr Aliyu Wamakko,
Recall that in May 2025, President Tinubu submitted the request to the National Assembly for external loans for the 2025 and 2026 financial years.
The request also comprised €4 billion, ¥15 billion, a $65 million grant and domestic borrowing through government bonds of about N757 billion.
After the demand for approval was submitted by the President about two months ago, the parliament did not take an immediate action on it because of a legislative recess and documentation issues from the Debt Management Office (DMO).
About $3 billion of the credit facility is expected to be used for the revitalisation of the Eastern Rail Corridor, stretching from Port Harcourt to Maiduguri.
In addition, parts of the funds would be used for other key infrastructural projects as well as to boost agriculture, security, power, housing, and digital connectivity across the country, which made the red chamber of the legislative arm of government to approve the loan.
The Deputy Senate President, Mr Jibrin Barau, noted that the borrowing plan reflected national inclusiveness, commending Mr Tinubu for his Renewed Hope Agenda, which he said was working because “no region is left out.”
When the matter was put to debate by members, it generated different views, with Mr Abdul Ningi expressing concerns over transparency and equitable distribution, noting, “We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose.”
But, the former chief executive of Polaris Bank and Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Mr Adetokunbo Abiru, said there nothing to worry about because “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.”
One of his colleagues, Mr Sani Musa, re-echoed this sentiment when he said the credit facility would span six years and defended the action by saying it is in line with global best practices because no economy grows without borrowing.