Senate Backs Tinubu’s $21bn Loan Plan, Cites Budget Alignment and Global Standards

• Nigeria’s Senate has greenlit President Bola Tinubu’s external borrowing plan of over $21 billion, anchoring the financial strategy for the 2025–2026 fiscal cycle
• The package includes multi-currency loans and domestic bonds earmarked for key sectors like infrastructure, security, housing, and digital connectivity
• With $3 billion allocated for revitalising the Eastern Rail Corridor, lawmakers say the plan reflects national inclusiveness and aligns with global economic best practices

The Nigerian Senate on Tuesday formally approved President Bola Tinubu’s external borrowing plan amounting to over $21 billion for the 2025–2026 fiscal period, marking a critical milestone for the full rollout of the 2025 Appropriation Act.

The sanctioned financial package encompassed $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million grant, and domestic borrowing through government bonds totalling approximately ₦757 billion.

In addition, provisions were made for raising up to $2 billion via a foreign-currency-denominated instrument in the domestic market.

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Committee chairs provide justification During the session, Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, presented the committee’s report, noting that the proposal was initially submitted to the National Assembly on 27 May but faced delays due to the legislative recess and documentation challenges from the Debt Management Office.

Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, affirmed that the borrowing strategy had already been incorporated 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.

Support and scrutiny within Senate

While the approval received broad backing, several senators raised important concerns.

Senator Sani Musa clarified that the borrowing would be disbursed over a six-year period, not confined to 2025.

“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said.

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Senator Adetokunbo Abiru assured the chamber that the loans complied with national financial legislation.

“These loans are long-term, some with tenors ranging from 20 to 35 years, and they are strictly tied to capital and human development projects,” he said.

However, Senator Abdul Ningi of Bauchi Central challenged the transparency of the plan and its fair distribution.

“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said.

$3bn allocated for Eastern rail corridor revitalisation

The borrowing plan prioritised key sectors such as infrastructure, agriculture, security, power, housing, and digital connectivity.

A significant highlight was the allocation of $3 billion for the revival of the Eastern Rail Corridor stretching from Port Harcourt to Maiduguri.

Senator Victor Umeh of Anambra Central expressed strong support for the rail investment.

“This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support,” he said.

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Senate leadership reaffirms national unity and accountability

Deputy Senate President Jibrin Barau praised the committee’s diligence and underscored the inclusive nature of the financial blueprint.

“This shows that the Renewed Hope Agenda is working. No region is left out,” he said.

Senate leaders emphasised that all approved funds must be strictly channelled into capital and development projects, consistent with public finance regulations.

Tinubu lectures Nigerians on loan

Legit.ng earlier reported that the APC’s presidential candidate, Asiwaju Bola Tinubu who on Friday, October 21, unveiled his 80-page Action Plan to rescue Nigeria dismissed the concerns about Nigeria’s rising debt portfolio.

Tinubu said the “whole of America should be in jail” if taking loans to build infrastructure and attract development is regarded as a crime.

He made the comment while delivering his speech at the launch of his campaign policy document at the state house in Abuja.

Source: Legit.ng