Senate approves 21 billion dollars loan for Pres Tinubu

DDM NEWS

Pres Tinubu

The Nigerian Senate has approved President Bola Tinubu’s request for a comprehensive external borrowing plan totaling over $21 billion for the 2025-2026 fiscal years.

This approval paves the way for the full implementation of the 2025 Appropriation Act.

$21.19 billion in direct foreign loans, €4 billion, ¥15 billion, and a $65 million grant

Approximately ₦757 billion through government bonds

Up to $2 billion to be raised in the domestic market

The funds are earmarked to support key national development projects across sectors such as Railways, power plants, and digital connectivity, Security operations and initiatives.

Agricultural projects and development, Housing projects and development.

Human Capital Development, Education and healthcare initiatives.

$3 billion allocated for the revitalization of the Eastern Rail Corridor, stretching from Port Harcourt to Maiduguri.

All borrowed funds must be strictly used for capital and development projects, in line with public finance regulations .

The Senate approved the loan request after considering the report of the Senate Committee on Local and Foreign Debt

Some senators expressed concerns over transparency and accountability in the borrowing plan, emphasizing the need for Nigerians to know the specifics of the loans and their intended impact.

Other senators praised the loan plan, highlighting its potential to drive national development and economic growth.

Senator Sani Musa defended the borrowing plan, saying it aligns with global economic practices and that “there’s no economy that grows without borrowing.

Senator Adetokunbo Abiru assured that the loans are concessional, with favorable repayment terms, and strictly tied to capital and human development projects.

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