Senate Approves Tinubu’s $21bn Foreign Loan Request to Fund 2025 Budget

The Nigerian Senate has approved President Bola Tinubu’s foreign loan request totaling over $21 billion for the 2025–2026 fiscal year. The green light paves the way for the full implementation of the 2025 Appropriation Act, a key component of the current administration’s development agenda.

The borrowing plan comprises $21.19 billion in external loans, along with €4 billion, ¥15 billion, and a $65 million grant. In addition to foreign loans, the plan also provides for domestic borrowing through government bonds valued at approximately ₦757 billion.

Notably, the framework includes a provision to raise up to $2 billion through foreign-currency-denominated instruments within the domestic market — a strategic move aimed at diversifying Nigeria’s borrowing channels and reducing dependency on traditional external lenders.

The Senate’s decision followed a report presented by Senator Aliyu Wamakko, Chairman of the Committee on Local and Foreign Debt. Wamakko noted that although the proposal was submitted on May 27, it encountered delays due to the National Assembly’s recess and issues related to documentation from the Debt Management Office.

Senator Olamilekan Adeola, Chairman of the Senate Appropriations Committee, clarified that much of the borrowing plan had already been factored into the Medium-Term Expenditure Framework (MTEF) and the 2025 national budget. He added that the approval was essential to ensure smooth and uninterrupted implementation of capital and recurrent projects across various sectors of the economy.

The move has sparked a mix of reactions from economic analysts and citizens, some of whom have raised concerns over Nigeria’s rising debt profile. However, government officials maintain that the loans are targeted at critical infrastructure and economic revitalization projects.