From Victor Osula, Abuja
The Nigerian Senate on Tuesday approved President Bola Tinubu’s request for a comprehensive external borrowing plan amounting to over $21 billion for the 2025–2026 fiscal years.
The approval followed the consideration and approval of the Senate Committee on Local and Foreign Debt, presented at Tuesday’s plenary by its chairman, Aliyu Wamako.
President Tinubu had on 27th May, requested the National Assembly’s approval to secure external loans of $21.5 million and ¥15 billion, along with a grant of €65 million, as part of the federal government’s proposed 2025–2026 external borrowing plan.
While the funds are intended to support various national development projects across key sectors, including infrastructure, security, agriculture and human capital development, the approved borrowing package includes “$21.19 billion in direct foreign loans, €4 billion (euros), ¥15 billion (Japanese yen), a $65 million grant, additional domestic borrowing through government bonds totaling approximately N757 billion and capital raising of up to $2 billion through a foreign-currency-denominated instrument in the domestic market.
Senator Sani Musa (Niger East) said the borrowing plan covers a six-year disbursement period.
Also, the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru (Lagos East), reassured the chamber that the loans comply with both the Fiscal Responsibility Act and the Debt Management Act. He stressed that all funds were designated for capital projects and human development.
“These loans are long-term, concessional, and come with favourable repayment terms. Some have tenors ranging from 20 to 35 years”, Abiru noted.
