Breaking: Senate Approves Loans for Tinubu as Details Emerge
- Senate approved Tinubu’s $2.847bn foreign loan request to fund 2025 budget and refinance Eurobonds
- Lawmakers debated rising debt concerns as Senate Committee on Local and Foreign Debts defended the borrowing plan
- Senators said the loans were vital for fiscal stability, infrastructure development, and sustaining economic growth
The Senate has approved President Bola Ahmed Tinubu’s request to secure a total of $2.847 billion in new foreign financing to support Nigeria’s 2025 budget and refinance maturing Eurobonds.
The approval followed the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North), which reviewed the president’s request titled “New External Borrowing and Refinancing.”
Source: Twitter
According to the report, the borrowing includes $2.347 billion from the international capital market to part-finance the 2025 budget deficit and a $500 million debut Sovereign Sukuk to fund critical infrastructure projects nationwide.
Lawmakers debate debt amid fiscal concerns
The approval came amid renewed debate over Nigeria’s rising debt profile, which the Debt Management Office (DMO) places at over ₦97 trillion as of mid-2025.
While some senators expressed concerns about the implications of increased borrowing, others argued that the loans were necessary to maintain project continuity and economic stability.
Presenting his report, Senator Wamakko explained that the borrowing was essential for Nigeria’s fiscal balance and to uphold the country’s credit reputation internationally.
He said,
“The approval will enable the Federal Government to meet its 2025 funding needs without disrupting ongoing fiscal commitments. This is a strategic step to ensure stability and continuity.”
Borrowing critical to funding the 2025 budget
Backing the motion, Senator Sani Musa (APC, Niger East), Chairman of the Senate Committee on Finance, said the borrowing was already captured in the 2025 fiscal framework and crucial for effective budget implementation.
He stated,
“It is very necessary that we give approval to this request so that the 2025 appropriation will be given the necessary funding.”
Similarly, Senator Adetokunbo Abiru (APC, Lagos East), Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, clarified that the new loan would not add to Nigeria’s debt burden but was part of a refinancing plan.
He explained,
“This is more of a compliance issue because the 2025 Appropriation Act has already captured it as part of the deficit financing. The second request is a refinancing arrangement to ensure that the country does not default in Eurobond servicing.”
Loans should target productive sectors, says Oshiomhole
Source: Twitter
Also contributing, Senator Adams Oshiomhole (APC, Edo North), Chairman of the Senate Committee on Interior, supported the loan request, arguing that borrowing is not inherently negative if used productively.
He said,
“There’s nothing wrong with borrowing if it is properly structured and used to address critical issues like unemployment and infrastructural decay. When channelled effectively, loans can stimulate economic recovery and job creation.”
Background to the request
President Tinubu’s loan request, first read on 8 October 2025, sought legislative backing to secure external financing as part of efforts to sustain national projects and manage debt obligations in line with the 2025 fiscal framework.
Government officials maintain that the loans are necessary to bridge funding gaps, sustain economic growth, and address key infrastructure needs, even as public debate continues over the long-term implications of Nigeria’s debt trajectory.
Source: Legit.ng
