Senate/ President Bola Ahmed Tinubu
The Senate has finally approved President Bola Tinubu’s foreign loan of over $21 billion for the 2025–2026 fiscal cycle.
The borrowing package includes $21.19bn in direct foreign loans, €4bn, ¥15bn, a $65m grant and domestic borrowing through government bonds totalling approximately ₦757bn.
Also, a provision to raise up to $2bn through a foreign-currency-denominated instrument in the domestic market.
The approval was sequence to the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako,
who noted that the plan was first submitted to the National Assembly on May 27 but was delayed due to legislative recess and documentation issues from the Debt Management Office.
The Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola,
said most of the loan requests had already been factored into the Medium-Term Expenditure Framework and the 2025 budget.
Explaining further, he said, “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.”
Senator Sani Musa who defended the borrowing said that, it aligned with global economic practices, adding that, the loan disbursement would span six years.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said.
Senator Adetokunbo Abiru, who chairs the Committee on Banking, Insurance and Other Financial Institutions, 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.
Among the key sectors targeted in the loan plan are infrastructure, agriculture, security, power, housing, and digital connectivity.
Deputy Senate President, Jibrin Barau, commended the committee’s efforts and stressed that the borrowing plan reflects national inclusiveness.
