The Nigerian Senate on Tuesday approved President Bola Tinubu’s external borrowing plan totaling over $21 billion for the 2025–2026 fiscal period, a major step toward enabling the full execution of the 2025 Appropriation Act.
The borrowing package comprises:
- $21.19 billion in foreign loans,
- €4 billion,
- ¥15 billion,
- A $65 million grant, and
- Domestic borrowing through government bonds amounting to approximately ₦757 billion.
Additionally, the plan allows for raising up to $2 billion through foreign currency-denominated instruments within the domestic market.
The approval followed the presentation of a report by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt. He noted that the proposal was initially submitted on May 27, but was delayed due to the National Assembly recess and pending documentation from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Appropriations Committee, clarified that most of the borrowing components were already accounted for in the Medium-Term Expenditure Framework (MTEF) and the 2025 national budget.
“This borrowing is already reflected in the 2025 Appropriation Act. With this approval, all funding sources—loans included—are now in place to finance the budget fully,” Adeola stated.
While the loan plan received majority support in the Senate, it also sparked concerns over Nigeria’s rising debt profile and the long-term implications of continued borrowing.
