In a major fiscal development, the Nigerian Senate has granted approval to President Bola Tinubu’s request to secure over $21 billion in external loans to fund the country’s budgetary needs for the 2025 and 2026 fiscal years. The approval was given during plenary on Monday, following a detailed review of the loan proposal submitted by the executive arm of government.
The loan, according to the presidency, is a crucial part of the Medium-Term External Borrowing Plan, aimed at supporting the full implementation of the 2025 Appropriation Act, which focuses on infrastructure, education, healthcare, energy, and social investment programs.
Senate President Godswill Akpabio, in announcing the decision, stated that the borrowing plan had been carefully scrutinized by the Senate Committee on Local and Foreign Debts and was deemed necessary to bridge Nigeria’s current budget deficit and stimulate economic recovery.
“The funds will be sourced from multilateral and bilateral lenders under favorable terms, with a clear repayment strategy in place,” Akpabio assured. He added that strict oversight will be exercised to ensure accountability and proper utilization of the borrowed funds.
Critics, however, have expressed concerns over Nigeria’s growing debt profile, warning that continuous borrowing without significant growth in revenue could deepen the nation’s fiscal vulnerability. In contrast, government officials insist that the loans are targeted at growth-enhancing projects and will deliver long-term economic benefits.
President Tinubu has yet to issue a formal statement following the Senate’s approval, but sources within the presidency indicate that disbursement negotiations with international lenders will begin immediately.
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