The Senate has approved President Bola Tinubu's external borrowing plan of over $21 billion for the 2025–2026 fiscal cycle, paving the way for the full implementation of the 2025 Appropriation Act.
The comprehensive borrowing package includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million grant, and domestic borrowing through government bonds totaling approximately ₦757 billion. The loan approval also includes a provision to raise up to $2 billion through a foreign-currency-denominated instrument in the domestic market.
The approval followed the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako. According to Wamako, the plan was initially submitted to the National Assembly on May 27 but faced delays due to legislative recess and documentation issues from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, emphasized that most of the loan requests had already been factored into the Medium-Term Expenditure Framework and the 2025 budget.
"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," Adeola explained.
This significant borrowing plan comes at a time when Nigeria continues to face economic challenges, with the government seeking external financing to support its development agenda and infrastructure projects outlined in the 2025 budget.
The approval marks a crucial step in the administration's economic strategy, allowing for the execution of planned government expenditures and projects for the fiscal year. Financial analysts will be closely monitoring how these funds are deployed and their impact on Nigeria's debt profile and economic growth.
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