The Nigerian Senate on Tuesday granted approval for President Bola Tinubu’s ambitious plan to borrow over $21 billion from external sources to fund the 2025-2026 fiscal years, ensuring the full implementation of the 2025 Appropriation Act.
The borrowing package includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million grant, and approximately ₦757 billion in domestic borrowing through government bonds.
Additionally, the plan allows for raising up to $2 billion in the domestic market via a foreign currency-denominated instrument.
The approval followed a report by Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, which noted that the proposal was initially submitted to the National Assembly on May 27, 2025.
However, delays occurred due to the legislative recess and incomplete documentation from the Debt Management Office, which were later resolved.
The borrowing plan aims to address Nigeria’s fiscal needs amid economic challenges, including infrastructure development and budget financing.
Critics, however, have raised concerns about the rising national debt, urging prudent management to avoid overburdening future generations.
