Nigerian Senate has approved President Bola Tinubu’s $21.5 billion external borrowing plan for 2025-2026.
Gatekeepers News reports that the approval followed the presentation of the report of the Committee on Local and Foreign Debts by Senator Aliyu Wamakko, Chairman of the committee.
The Senate also approved a loan request of 15 billion Japanese Yen and 65 million Euros grant.
Additionally, the Senate approved the issuance of a Federal Government Bond of N757 billion for payment of accrued rights pension arrears as of December 2023 for the Contributory Pension Scheme (CPS).
Senator Wamakko said the loan requests were part of the already approved Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the 2025 budget. Senator Solomon Adeola, Chairman, Senate Committee on Appropriations, noted that the approval was largely a formality, as most of the items had already been outlined in the MTEF and 2025 budget.
“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.
Some senators expressed support for the plan, citing its potential to boost economic growth and development.
Senator Sani Musa said, “There’s no economy that grows without borrowing. What we are doing is in line with global best practices.”
However, Senator Abdul Ningi raised concerns about the repayment plan, saying, “We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose.”
