Senate approves Tinubu’s $21bn borrowing plan for 2025–2026 fiscal cycle

By Kunle Sanni –

The Senate has approved President Bola Ahmed Tinubu’s external borrowing request amounting to over $21 billion, paving the way for the implementation of the 2025 Appropriation Act and key national development initiatives.

The approved borrowing includes $21.19 billion in foreign loans, €4 billion, ¥15 billion, a $65 million grant, and ₦757 billion in domestic borrowing through government bonds. It also authorizes the federal government to raise up to $2 billion through a foreign-currency bond within the domestic market.

The decision followed the presentation of a report by Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debts. Wamako explained that the request was submitted on May 27 but experienced delays due to the legislative recess and incomplete documentation from the Debt Management Office (DMO).

Senator Olamilekan Adeola, Chairman of the Appropriations Committee, clarified that the loans had already been factored into the 2025 budget and the Medium-Term Expenditure Framework (MTEF), and were necessary for effective execution of fiscal plans.

“This approval secures all projected revenue sources for 2025, including borrowing,” Adeola stated. “It enables the federal government to execute the budget as planned.”

Despite broad support in the chamber, some lawmakers expressed concern over the growing national debt profile, urging caution in its implementation and repayment plans.

Senator Sani Musa defended the move, noting that the disbursement would span six years and that borrowing is a globally accepted strategy for driving economic growth.

“No country can grow its economy without access to credit,” Musa said. “These loans follow global standards and are essential for national development.”