The Senate on Tuesday approved President Bola Tinubu’s external borrowing plan of over $21 billion for the 2025 – 2026 external borrowing plan of the Federal Government.
The comprehensive borrowing package includes $21.19billion in direct foreign loans, €4 4billion, ¥15billion, a $65million grant and domestic borrowing through government bonds totalling approximately N757billion.
Also included was a provision to raise up to $2billion through a foreign-currency-denominated instrument in the domestic market.
The approval followed the presentation and adoption of the report of the Senate Committee on Local and Foreign Debt, titled: “Report of the Committee on Local and Foreign Debts: That the Senate do receive and consider the report of the Committee on Local and Foreign Debts on the following: 2025 – 2026 External Borrowing (Rolling) Plan; Issuance of FGN Bonds to settle outstanding pension liabilities under the contributory pension scheme; and Establishment of Foreign Currency Denominated Issuance Programme in the domestic debt market.”
It was presented by the Chairman of the Committee, Senator Aliyu Wamako, who said that the plan was first transmitted to the National Assembly on May 27 but was delayed due to legislative recess and documentation issues from the Debt Management Office.
In his contribution, the Chairman of the Senate Committee on Appropriations, Senator Solomon Adeola, said most of the loan requests had already been factored into the Medium-Term Expenditure Framework and the 2025 budget.
“The borrowing is already embedded in the 2025 Appropriation Act. With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” Adeola said.
Senator Mohammed Sani Musa (APC – Niger East) noted that the loan disbursement would span six years, not just 2025.
He said the loan request was in tandem with global economic practices.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said.
The Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Tokunbo Abiru, assured the chamber that the loans are concessional and adhere to the Fiscal Responsibility Act and Debt Management Act.
“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,” he said.
However, Senator Abdul Ningi (PDP- Bauchi Central) expressed worry over transparency and equitable distribution of the loan, warning that Nigerians deserve to know the specifics of the loans and their intended impact.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said.
Among the key sectors targeted in the loan plan are infrastructure, agriculture, security, power, housing, and digital connectivity.
A major component of the loan is the allocation of $3billion for the revitalisation of the Eastern Rail Corridor, stretching from Port Harcourt to Maiduguri.
Senator Victor Umeh (LP – Anambra Central) hailed the rail project as a milestone, saying, “This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support.”
Deputy Senate President, Barau Jibrin, commended the committee’s efforts and noted that the borrowing plan reflects national inclusiveness.
“This shows that the Renewed Hope Agenda is working. No region is left out,” he said.
