₦airaland Forum

The Senate today gave its approval to President Bola Tinubu's plan to borrow over $21 billion from external sources for the fiscal years 2025–2026, enabling the comprehensive execution of the 2025 Appropriation Act.

https://x.com/NigeriaStories/status/1947678454721204255


Henry Umoru

ABUJA – THE Senate has approved the 2025-2026 external borrowing plan of $21.5 billion presented by President Bola Tinubu for consideration.


Also approved was a loan request of 15 billion Japanese Yen and 65 million Euros grant.



The Senate also approved the issuance of Federal Government Bond of N757 billion for payment of accrued rights pension arrears as at December 2023 for the Contributory Pension Scheme (CPS).

The Upper Chamber also approved President Tinubu’s request for capital raising of up to $2 billion through a foreign-currency-denominated instrument in the domestic market.

The approval yesterday was sequel to the presentation and consideration of the report of the Committee on Local and Foreign Debt by Chairman of the Committee, Sen. Aliyu Wamakko, APC, Sokoto North.

Recall that the loan request, according to President Bola Tinubu, was designed to fund various critical national development projects across key sectors of the economy.

In his presentation, Senator Wamakko who noted that the loan request was part of the already approved Medium Term Expenditure FrameWork (MTEF)and Fiscal Strategy Paper (FSP) for the 2025 budget, said that the MTEF and FSP contained most of the items in the borrowing plans, adding that based on the findings, the committee recommended that the Senate do approve the President’s request.

On his part, Chairman, Senate Committee on Appropriations, Senator Solomon Adeola, APC-Ogun West, who seconded the motion for approval, said that the approval was largely a formality, as most of the items had already been outlined in the MTEF and 2025 budget previously passed by the National Assembly.

Adeola said, “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 said.

In his contribution, Chairman, Senate Committee on Finance, Sen. Sani Musa, APC, Niger East, who noted that the borrowing plan covers a six-year disbursement period, not just the 2025 fiscal year, said that Nigeria has not defaulted on any of its existing loan repayments.

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Musa said, “There’s no economy that grows without borrowing. What we are doing is in line with global best practices.”

On his part, Senator Sen. Adetokunbo Abiru, APC Lagos East, who assured that the Senate that the loan request compiled with the Fiscal Responsibility Act (FRA)and the Debt Management Act, saying the funds are for capital projects and human development, said, “These loans are long-term, concessional, and come with favorable repayment terms. Some stretch between 20 and 35 years.”

However, Senator Abdul Ningi, PDP-Bauchi Central, who raised concerns that the committee in its document did not indicate how the loan would be repaid, said that there was a need to detail how the loan sought after would be used to impact constituents, saying that the people would ask the lawmakers how the funds were expended.

Ningi, who noted that the document failed to provide specific breakdown on what each state or agency would receive and how the loans would be repaid, said, “We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose.”


He cited constitutional provisions regarding borrowing oversight.

In his contribution, Senator Victor Umeh, LP-Anambra Central, who expressed strong support for the plan, highlighting the provision on investment in the eastern corridor, said, “This is the first time I’ve seen three billion dollars allocated to rebuild the eastern rail line, that alone justifies my full support.”

In his remarks, Deputy Senate President Jibrin Barau, APC, Kano North, who presided, lauded the committee’s input, saying that the entire nation was being carried along in the borrowing plan.

He said, “This shows that the Renewed Hope Agenda is working; no region is left out. With the borrowing plan now approved, implementation of the 2025 Appropriation Act can begin in full.”

He said that all funds disbursed under the facility must be utilised strictly for capital and developmental projects, in line with the laws governing public finance.

https://www.vanguardngr.com/2025/07/senate-approves-2025-2026-external-borrowing-plan-of-21-5bn-n757bn-pension-bond-arrears/

Even after removing the subsidy, the Tinubu regime continues to plunge this country into more borrowing and debt.


Come 2027, Nigerians will obviously ask Tinubu, where is the money saved from the subsidy removal?

Devilish assembly
24 more characters needed ok

Nlfpmod, they told us they are making more money from subsidy, please why are they borrowing heavily?

We are borrowing like graves, yet they keep on telling us things are improving.

Ofunaofu:
Even after removing the subsidy, the Tinubu regime continues to plunge this country into more borrowing and debt.


Come 2027, Nigerians will obviously ask Tinubu, where is the money saved from the subsidy removal?

iwaeda:
We are borrowing like graves, yet they keep on telling us things are improving.

naijapikin2:
Devilish assembly
24 more characters needed ok

So the Senate shouldn't approved MTEF? 😂😂😂 Do you know what MTEF is?. I can't blame you guys tho, it's bad enough to be a wailer but even worse when it's combined with low_IQ.

Ofunaofu:
Even after removing the subsidy, the Tinubu regime continues to plunge this country into more borrowing and debt.


Come 2027, Nigerians will obviously ask Tinubu, where is the money saved from the subsidy removal?

naijapikin2:
Devilish assembly
24 more characters needed ok

iwaeda:
We are borrowing like graves, yet they keep on telling us things are improving.

Go school you say no.. make nairaland dey delete our comments, doesn't change the truth.

The claim they have 49 billion in foreign reserve yet Dem wan borrow 21 billion dollars to waste

The money they're borrowing in preparation for 2027 election. Those people are joking. That's it.

E build lagos

E reach to build Nigeria ,cement finish

Where is the Trillions that they say Tinubu is saving daily from subsidies?

Rubber-stamp Senate?

Putindbutt:
So the Senate shouldn't approved MTEF? 😂😂😂 Do you know what MTEF is?. I can't blame you guys tho, it's bad enough to be a wailer but even worse when it's combined with low_IQ.

Oya tell us what it means

The master strategist and self-proclaimed financial engineer is borrowing 32 trillion naira to fund a 55 trillion naira budget. This does not even align with the MTEF. This is despite the widely celebrated fuel subsidy removal and IMF-inspired currency devaluation that has now plunged more Nigerians into abject poverty. Largest cabinet in the history of the country, but one can barely point at 5 working ministers. He has abandoned governance and commenced his reelection campaign from day one of his tenure. No ministerial oversight, no accountability from his appointees, no coordination. At this rate, anyone but Tinubu will do better even without a manifesto. Tinubu and his Lagos Areaboys are highly overrated.

A borrower is a servant to lender and he may not decide what to do about the future.

MTEF is not necessary if we have surplus as APC loud speakers like f one tha put in the but over there. A man peddling falsehood. MTEF is only peculiar to Nigeria, imagine Nigeria still running 2023 budget on capital expenditures, even some APC law makers opposed this.

With the rate of this impact-less borrowing, we may like missed buhari.

People are already crying of better government under Buhari, with abysmal performance of Tinubu.