Senate Approves Tinubu’s $21bn Loan Plan for 2025–2026 Budget Cycle

The Senate on Tuesday gave the green light to President Bola Tinubu’s massive external borrowing plan—over $21 billion—for the 2025–2026 fiscal cycle, unlocking the final piece needed to fully implement the 2025 national budget.

The loan package is extensive. It includes $21.19 billion in foreign loans, €4 billion, ¥15 billion, and a $65 million grant. It also features a domestic borrowing component of about ₦757 billion through government bonds. Additionally, the federal government was cleared to raise up to $2 billion via foreign-currency-denominated instruments in the domestic market.

The approval followed the presentation of a report by Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt. He noted that the proposal was first submitted to the National Assembly on May 27 but experienced delays due to the legislative recess and document clarifications from the Debt Management Office.

Backing the plan, the Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola, confirmed that the loans were already accounted for in the budget framework.

“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.

While the Senate largely supported the plan, some lawmakers raised caution.

Senator Sani Musa clarified that the loan disbursement would be phased over six years, not confined to 2025.

“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said in defence of the loan.

Senator Adetokunbo Abiru, who chairs the Senate Committee on Banking, Insurance, and Other Financial Institutions, sought to allay fears about Nigeria’s rising debt.

“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 explained, assuring that the loans comply with both the Fiscal Responsibility Act and the Debt Management Act.

However, Senator Abdul Ningi of Bauchi Central raised concerns about oversight, equity, and clarity.

“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he warned.

Among the most notable items in the borrowing plan is a $3 billion allocation for the Eastern Rail Corridor, which stretches from Port Harcourt to Maiduguri. Senator Victor Umeh of Anambra Central praised the move.

“This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support,” he said.

Deputy Senate President Jibrin Barau also hailed the decision, noting that the plan reflected national balance and equity.

“This shows that the Renewed Hope Agenda is working. No region is left out,” he said.

Senate leaders concluded by emphasizing that every kobo must be deployed strictly for capital and developmental projects, in full compliance with public finance laws.