Nigerian Senate Approves Tinubu $21B Foreign Borrowing Plan

The Nigerian Senate has approved President Bola Tinubu's external borrowing plan of over $21 billion for the 2025–2026 fiscal period to finance key national development projects such as infrastructure, security, education, health, agriculture, and human capital development. The borrowing package includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million grant, approximately ₦757 billion in domestic borrowing through government bonds, and authorization to raise up to $2 billion via foreign-currency-denominated instruments in the domestic market. The plan aligns with the already approved Medium Term Expenditure Framework and Fiscal Strategy Paper, and disbursement is planned over six years with loans being long-term, concessional, and compliant with Nigeria's Fiscal Responsibility and Debt Management Acts. Senate leaders emphasized that borrowing is consistent with global economic best practices and necessary for economic growth, while assuring that Nigeria has maintained its debt obligations without default. Despite broad support, some lawmakers expressed concerns over the rising national debt and urged careful management to prevent overburdening future generations. The approval ensures that all revenue sources, including loans, are in place to fully fund the 2025 budget.