The Senate on Tuesday, July 22, gave the inexperienced mild to President Bola Tinubu’s request to borrow over $21 billion for the 2025–2026 fiscal interval.
The approval goals to allow full execution of the 2025 Appropriation Act.
The borrowing plan covers $21.19 billion in exterior loans, €4 billion, ¥15 billion, a $65 million grant, and home borrowing of roughly ₦757 billion via authorities bonds.
It additionally features a provision to lift $2 billion by way of foreign-currency-denominated devices within the native market.
Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, offered the report and defined that the proposal was first despatched to the National Assembly on May 27, however assessment was delayed on account of legislative recess and incomplete paperwork from the Debt Management Office.
Senator Olamilekan Adeola, who heads the Appropriations Committee, mentioned the borrowing had already been constructed into the 2025 funds framework.
“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 acknowledged.
Senator Sani Musa famous that the disbursement would happen over six years, not inside a single fiscal yr.
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“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” Musa mentioned.
Senator Adetokunbo Abiru, Chairman of the Banking, Insurance and Other Financial Institutions Committee, added that the loans are concessional and compliant with fiscal legal guidelines.
“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,” Abiru defined.
Despite broad help, Senator Abdul Ningi raised transparency issues.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he mentioned.
Key sectors listed within the plan embrace infrastructure, agriculture, safety, energy, housing, and digital know-how. Notably, $3 billion is earmarked for reviving the Eastern Rail Corridor from Port Harcourt to Maiduguri.
Senator Victor Umeh described the rail funding as historic. “This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support,” Umeh mentioned.
Deputy Senate President Jibrin Barau praised the inclusive nature of the proposal. “This shows that the Renewed Hope Agenda is working. No region is left out,” he mentioned.
Senate leaders emphasised that every one borrowed funds have to be used solely for capital and improvement initiatives, in step with public finance guidelines.
