The Nigerian Senate on Tuesday gave its approval to President Bola Tinubu’s external borrowing plan for the 2025–2026 fiscal period, amounting to $21.8 billion, €2.1 billion, ¥15 billion, and an additional €65 million in grant funding.
The loan package, submitted by the President on May 27, is intended to finance key developmental projects across critical sectors including infrastructure, health, education, water supply, and other priority areas of the Tinubu administration.
In addition to the external borrowing plan, the Senate also approved a proposal by the Federal Government to issue domestic bonds worth ₦757.98 billion to clear outstanding pension liabilities.
Furthermore, lawmakers sanctioned a request to raise up to $2 billion from the local debt market to support the implementation of the Presidential Executive Order on the Foreign Currency Denominated Instrument Local Issuance Programme, coordinated by the Debt Management Office (DMO).
The approvals followed the recommendations of the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko.
Despite the approvals, the borrowing plan sparked concerns among some lawmakers. Senator Abdul Ningi voiced apprehension over the country’s growing debt burden and lack of clear repayment strategies.
“Generations after us will continue to pay these loans. I reviewed the document, and I couldn’t find any specific details on how the government plans to repay,” he said.
However, senators including Adetokunbo Abiru and Sani Musa, Chairman of the Senate Committee on Finance, defended the plan, insisting that the loan conditions were favourable and the borrowing necessary to drive national development.
