The Senate at plenary on Tuesday okayed President Bola Ahmed Tinubu’s request to borrow over $21 billion externally for the 2025-2026 fiscal years, inspite of public outrage against securing further loans.
The funds, according to President Tinubu, will support various national development projects across key sectors, including infrastructure, security, agriculture, and human capital development.
A breakdown of the borrowing package are as follows, $21.19 billion in direct foreign loans, €4 billion (euros), ¥15 billion, (Japanese yen), $65 million grant. Additional domestic borrowing through government bonds totaling approximately ₦757 billion.
Capital fund of up to $2 billion through a foreign-currency-denominated instrument in the domestic market
The borrowing plan includes funding for critical national infrastructure, such as railways, power plants, digital connectivity, security operations, agriculture, and housing projects.
Sen. Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, presented the report after a long delay due to parliamentary recesses and challenges in obtaining documentation from the Debt Management Office (DMO).
The Senate Committee on Appropriations noted that the approval was largely procedural, as most of the items had already been incorporated into the Medium-Term Expenditure Framework (MTEF) and the 2025 Budget.
Senators expressed both support and concern, with some emphasizing the need for transparency and accountability in the borrowing plan.
Deputy Senate President Jibrin Barau, extolled the committee’s work, stating that “the entire nation is being carried along” in the borrowing plan.
Senate leadership emphasized that all disbursed funds must be used strictly for capital and developmental projects, in accordance with laws governing public finance.
