Abuja, Nigeria — The Nigerian Senate has approved President Bola Tinubu’s $21.19 billion foreign loan request to fund key national projects for the 2025–2026 period.
The approval was confirmed during plenary on Tuesday in Abuja, following the submission of a detailed report by Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt.
Originally introduced in May 2025, the plan faced delays due to recess and documentation challenges from the Debt Management Office (DMO). The borrowing package includes $21.19 billion in external loans, €4 billion, ¥15 billion, a $65 million grant, and additional ₦757 billion in government bonds, as well as a $2 billion capital raise via domestic foreign currency instruments.
According to Senator Olamilekan Solomon, Chairman of the Senate Appropriations Committee, the borrowing aligns with the 2025 Budget and Medium-Term Expenditure Framework (MTEF), already passed by the Senate.
“The loans provide the required funding to implement the 2025 budget fully,” Solomon explained.
While some lawmakers supported the move, citing it as essential for national growth, others expressed concern about loan transparency and disbursement clarity.
Senator Sani Musa defended the plan, stating that “no economy grows without borrowing,” adding that the disbursement would span six years and comply with Nigeria’s Fiscal Responsibility and Debt Management Acts.
Senator Abdul Ningi, however, called for accountability, demanding a breakdown of allocations and repayment strategies, saying, “We must explain to Nigerians what is borrowed in their name.”
The approved funds are earmarked for critical sectors such as infrastructure, digital connectivity, agriculture, housing, and security. Projects include the long-awaited rehabilitation of the Eastern Rail Line from Port Harcourt to Maiduguri.
Senator Victor Umeh of Anambra Central praised the plan, describing the $3 billion allocation to the Eastern corridor as “historic.”
Deputy Senate President Jibrin Barau commended the inclusive nature of the plan, asserting, “No region is left out. The Renewed Hope Agenda is working.”
The Senate reaffirmed that all funds must be applied strictly to capital and human development projects in accordance with national laws.
By Makinde oyinkansola| July 22, 2025
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