Senate approves Tinubu $21bn loan package for 2025–26 budget, including €4bn, ¥15bn, and ₦757bn bonds to fund infrastructure and economic growth
The Senate Approves Tinubu’s $21bn Loan package on Tuesday, paving the way for full execution of the 2025 Appropriation Act.
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The borrowing plan includes $21.19bn in foreign loans, €4bn, ¥15bn, $65m in grants and up to ₦757bn in domestic government bonds.
Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, reported that the borrowing request was first submitted on 27 May but delayed due to recess and documentation from the Debt Management Office.
Senator Olamilekan Adeola, Chairman of the Appropriations Committee, said most requested loans align with the Medium-Term Expenditure Framework and stated, “With this approval, we now have all revenue sources, including loans, in place to fully fund the budget.”
Loans Structure and Timeline
- Foreign Loans: $21.19bn
- Grants: $65m
- Euro Bonds: €4bn
- Yen Loans: ¥15bn
- Domestic Bonds: Approx. ₦757bn
- Foreign‑currency Domestic Instrument: Up to $2bn
Senator Sani Musa clarified that disbursements would stretch across six years and are “in line with global best practices.”
Senator Adetokunbo Abiru confirmed that the loans are concessional, with tenors of 20 to 35 years for capital and human development projects, in compliance with the Fiscal Responsibility and Debt Management Acts.
Debate, Oversight, and Project Allocation
Senator Abdul Ningi raised concerns about transparency and equitable use of funds.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said.
Key sectors set to benefit include infrastructure, agriculture, security, power, housing, and digital connectivity.
A standout allocation is $3bn for the Eastern Rail Corridor—from Port Harcourt to Maiduguri—a move praised by Senator Victor Umeh as “a milestone… it alone justifies my full support.”
Deputy Senate President Jibrin Barau added that the plan reflects the inclusivity of the Renewed Hope Agenda, saying, “No region is left out.”
Spending and Accountability Measures
Senate leaders emphasised that all funds must be used strictly for capital development under strong public finance regulations.
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The Borrowing Committee will oversee disbursement, ensuring alignment with national development priorities.
