Senate Backs Tinubu Plan To Borrow 21 Billion Dollars

The Nigerian Senate has given the green light to President Bola Tinubu’s request to borrow over $21 billion from external sources as part of funding plans for the 2025 and 2026 fiscal years.

The approval clears the way for full execution of the 2025 national budget.

The borrowing plan includes $21.19 billion in foreign loans, €4 billion, ¥15 billion, and a $65 million grant. It also allows for local borrowing through bonds worth about ₦757 billion. Additionally, the government can raise up to $2 billion using a foreign-currency bond within the domestic market.

The loan request was first submitted on May 27 but faced delays due to the National Assembly’s recess and missing documents from the Debt Management Office. The plan was finally adopted following a report presented by Senator Aliyu Wamakko, head of the Senate Committee on Local and Foreign Debt.

Senator Olamilekan Adeola, who leads the Committee on Appropriations, explained that the proposed borrowing was already included in the Medium-Term Expenditure Framework and reflected in the 2025 budget. With Senate approval now in place, the government has access to all required revenue sources for the year.

While most lawmakers supported the decision, there were voices of concern. Senator Sani Musa explained that the loan disbursement would be spread over six years, not limited to 2025, and argued that borrowing remained a normal tool for national growth, just as practiced globally.

Senator Adetokunbo Abiru added that the loans were concessional and complied with laws on debt responsibility. He said the loans came with repayment periods of 20 to 35 years and were tied to major capital and human development programmes.

Still, Senator Abdul Ningi raised questions about how transparent the borrowing process would be. He argued that Nigerians deserve clear answers about how much is being borrowed, what the money will be used for, and how it would impact communities across the country.

The approved borrowing plan focuses on several sectors, including infrastructure, power, agriculture, housing, digital connectivity, and security. A standout feature is the $3 billion allocation for the rebuilding of the Eastern Rail Corridor, linking Port Harcourt to Maiduguri.

Senator Victor Umeh praised the eastern rail project, saying it marked a turning point in regional infrastructure development. Deputy Senate President Jibrin Barau added that the plan reflects the government’s commitment to fairness, as all regions will benefit.

Senate leaders stressed that all funds must be used only for development purposes, especially in line with public finance rules. With borrowing now approved, attention will turn to implementation and whether the promised projects deliver real results for citizens.