JUST IN: Senate Approves Tinubu’s $21bn Foreign Loan

In a major development on Tuesday, the Nigerian Senate approved President Bola Ahmed Tinubu’s foreign borrowing plan amounting to over $21 billion for the 2025–2026 fiscal years.

This loan, as explained by Senate leadership, is intended to fund critical development projects nationwide. These include investments in infrastructure, security, agriculture, and human capital development.

During plenary in Abuja, Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, presented the detailed report.

Although the proposal was first introduced on May 27, 2025, its adoption faced delays due to legislative recess and documentation issues from the Debt Management Office (DMO).

Loan Components and Breakdown

The Senate-approved plan comprises:

$21.19 billion in direct foreign loans

€4 billion (euros)

¥15 billion (Japanese yen)

A $65 million grant

Additional ₦757 billion in domestic borrowing via government bonds

Up to $2 billion raised through a foreign-currency instrument in the local market

Senator Olamilekan Solomon (Ogun West), Chairman of the Appropriations Committee, noted that most of these loan components were already embedded in the 2025 Appropriation Act and Medium-Term Expenditure Framework (MTEF). He added, “This approval allows us to fully fund the national budget with both revenue and loan components in place.”

Senators React to the Approval

Reactions from lawmakers were mixed. Some expressed support, while others raised concerns.

Senator Sani Musa (Niger East) clarified that the loan would be disbursed over six years.

He stressed that Nigeria has not defaulted on any of its obligations.

“There is no economy that grows without borrowing,” he said. “This is in line with global best practices.”

On his part, Senator Adetokunbo Abiru (Lagos East), Chairman of the Banking Committee, assured the Senate that the loans comply with the Fiscal Responsibility Act and Debt Management Act.

He emphasized that the funds would strictly support capital and developmental projects, noting, “These are long-term, concessional loans with repayment tenors between 20 and 35 years.”

However, Senator Abdul Ningi (Bauchi Central) voiced skepticism.

He questioned the lack of transparency regarding how much each state or agency would receive.

“We must inform our constituents what’s being borrowed in their name and for what purpose,” Ningi asserted.

Key Sectors Targeted for Investment

The loan will fund projects such as:

The Eastern Rail Line from Port Harcourt to Maiduguri

Power generation plants

Digital infrastructure

Agricultural and housing developments

National security operations

Senator Victor Umeh (Anambra Central) expressed strong support, praising the $3 billion allocation for rebuilding the long-neglected Eastern rail corridor. “This alone justifies my vote,” he said.

Senate Leadership Weighs In

Deputy Senate President Jibrin Barau commended the committee’s work and highlighted that all geopolitical zones are included.

“This proves the Renewed Hope Agenda is working. No region is left behind,” he stated.

Senate leadership concluded by urging strict monitoring to ensure that all disbursed funds are used for their intended purposes and in accordance with public finance laws.

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