The Senate has approved the 2025-2026 external borrowing plan of billion dollars presented by President Bola Ahmed Tinubu for approval
Senate consideration followed the presentation of the report of the Committee on Local and Foreign Debt at plenary on Tuesday by the Chairman of the Committee, Sen. Aliyu Wamakko (APC-Sokoto).
The loan request, according to President Tinubu, was aimed at funding various critical national development projects across key sectors of the economy.
The sectors include infrastructure, security, education, health, agriculture, and human capital development, among others.
The Senate also approved a loan request of 15 billion Japanese Yen and a 65 million Euro grant.
Also considered was the additional domestic borrowing through the issuance of a Federal Government Bond of N757 billion for payment of pension arrears as of Dec 2023.
The Senate also approved President Tinubu’s request for capital raising of up to two billion dollars through a foreign-currency-denominated instrument in the domestic market.
Senator Wamakko, in his report, said the loan request was part of the already approved Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the 2025 budget.
He said the MTEF and FSP included most of the items in the borrowing plans.
He said based on the assessment, the committee recommends that the Senate do approve the President’s request.
Senator Solomon Adeola (APC-Ogun), who seconded the motion for approval, said 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.
Mr Adeola, who is the Chairman of the Senate Committee on Appropriations, said:
“The borrowing is already embedded in the 2025 Appropriation Act.”
For Senator Sani Musa (APC-Niger), the borrowing plan covered a six-year disbursement period, not just the 2025 fiscal year, saying that Nigeria has not defaulted on any of its existing loan repayments.
“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” Musa said.
Sen Adetokunbo Abiru (APC-Lagos) assured the Senate that the loan request complied with the Fiscal Responsibility Act (FRA) and the Debt Management Act, saying the funds are for capital projects and human development.
“These loans are long-term, concessional, and come with favourable repayment terms. Some stretch between 20 and 35 years,” Abiru said.
However, Sen Abdul Ningi (PDP-Bauchi) raised concerns that the committee in its document did not indicate how the loan would be repaid.
He said there was the need to detail how the loan sought after would be used to impact constituents.
He said the document failed to provide a specific breakdown of what each state or agency would receive and how the loans would be repaid.
“We need to tell our constituents exactly how much has been borrowed in their name and for what purpose,” Ningi said, citing constitutional provisions regarding borrowing oversight.
The Deputy Senate President Jibrin Barau (APC-Kano), who presided over the president’s loan request, lauded the committee’s input, saying that the entire nation was being carried along in the borrowing plan.
“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 explained.
He said all funds disbursed under the facility must be utilised judiciously for capital and developmental projects.
Editing by Abdullahi Lamino
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