The Nigerian Senate has greenlit President Bola Tinubu’s $21.5 billion external borrowing plan for 2025-2026, following a report presented by Senator Aliyu Wamakko, Chairman of the Committee on Local and Foreign Debts, during Tuesday’s plenary session. The Senate also approved a 15 billion Japanese Yen loan, a 65 million Euro grant, a N757 billion Federal Government Bond for pension arrears under the Contributory Pension Scheme, and a $2 billion domestic foreign currency-denominated instrument.
Wamakko noted that the borrowing aligns with the 2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), already passed by the National Assembly. Senator Solomon Adeola, Chairman of the Senate Committee on Appropriations, described the approval as a formality, stating, “The borrowing is embedded in the 2025 Appropriation Act, ensuring all revenue sources are in place to fund the budget.”
Support came from Senators Sani Musa and Adetokunbo Abiru, who highlighted the plan’s compliance with the Fiscal Responsibility Act and Debt Management Act. Musa emphasized that the loans, with favorable 20- to 35-year terms, align with global borrowing practices, while Abiru noted their focus on capital projects and human development. Senator Victor Umeh praised the plan’s inclusion of $3 billion for rebuilding the eastern rail line, calling it a significant investment.
However, Senator Abdul Ningi expressed concerns over the lack of clarity on repayment plans and specific allocations for states and agencies. “We must inform our constituents how these funds will be used and repaid,” he urged, citing constitutional oversight requirements.
Deputy Senate President Jibrin Barau, presiding over the session, commended the plan’s inclusivity, stating, “The Renewed Hope Agenda ensures no region is left out. With this approval, the 2025 budget implementation can proceed fully.” He stressed that the funds must be used strictly for capital and development projects, in line with public finance laws.
Nigeria’s public debt reached N149.39 trillion by March 31, 2025, a 22.8% increase from N121.67 trillion the previous year. The approval reflects the government’s strategy to bridge fiscal gaps, but concerns linger over debt sustainability and transparency in fund utilization.
