By Nafisat Makinde
The Nigerian Senate has given its approval to President Bola Tinubu’s $21.5 billion external borrowing plan for the 2025-2026 fiscal period. This approval is a significant step towards funding critical development projects across vital sectors of the economy, including infrastructure, security, education, health, agriculture, and human capital development.
President Tinubu, in his request to the Senate, emphasized the importance of this loan in driving economic growth and development in Nigeria. He explained that the loan is intended to fund critical development projects that will have a positive impact on the lives of Nigerians.
Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt, assured that the borrowing requests are already captured in the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) that form the basis of the 2025 budget. “The borrowing requests are already captured in the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) that form the basis of the 2025 budget,” he said.
Senator Solomon Adeola (APC-Ogun) described the approval as a formality, noting that the loans are already embedded in the 2025 Appropriation Act. “The approval is a formality, noting that the loans are already embedded in the 2025 Appropriation Act,” he said.
Senator Sani Musa (APC-Niger) explained that the loan disbursement spans a six-year period and not just the 2025 fiscal year. He also emphasized that borrowing is a global norm for economic growth and that Nigeria has not defaulted on its existing loans. “The loan disbursement spans a six-year period and not just the 2025 fiscal year. Borrowing is a global norm for economic growth and we have not defaulted on our existing loans,” he said.
Senator Adetokunbo Abiru (APC-Lagos) assured that the loans comply with the Fiscal Responsibility Act and the Debt Management Act. He also explained that the funds would be channeled toward capital projects and human development, noting that the facilities are long-term and concessional, with repayment periods ranging from 20 to 35 years. “The loans comply with the Fiscal Responsibility Act and the Debt Management Act. The funds would be channeled toward capital projects and human development, noting that the facilities are long-term and concessional, with repayment periods ranging from 20 to 35 years,” he said.
Senator Abdul Ningi (PDP-Bauchi) emphasized the importance of transparency, noting that the constituents need to know exactly how much is being borrowed in their name and for what purpose. “We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said.
Deputy Senate President Jibrin Barau (APC-Kano) described the approval as a demonstration of the Renewed Hope Agenda working, noting that no region is left out. “This shows that the Renewed Hope Agenda is working; no region is left out,” he said.
In addition to the $21.5 billion borrowing plan, the Senate also approved a loan request of 15 billion Japanese Yen, a grant of 65 million Euros, and an additional domestic borrowing of ₦757 billion through the issuance of Federal Government Bonds to settle pension arrears as of December 2023. Furthermore, the Senate granted approval for the President to raise up to $2 billion via a foreign currency-denominated instrument in the domestic market.
The dignitaries in attendance included Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt, Senator Solomon Adeola (APC-Ogun), Senator Sani Musa (APC-Niger), Senator Adetokunbo Abiru (APC-Lagos), Senator Abdul Ningi (PDP-Bauchi), Senator Victor Umeh (LP-Anambra), and Deputy Senate President Jibrin Barau (APC-Kano).
