Nigerian Senate on Tuesday approved a $21.5 billion external borrowing plan for 2025-2026, alongside a N757 billion Federal Government Bond to clear pension arrears under the Contributory Pension Scheme (CPS) as of December 2023.
The approvals, which also include a 15 billion Japanese Yen loan, a 65 million Euro grant, and a $2 billion capital-raising through a foreign currency-denominated instrument in the domestic market, aim to finance critical development projects across Nigeria.
The decisions followed a detailed report presented by Sen. Aliyu Wamakko (APC-Sokoto), Chairman of the Senate Committee on Local and Foreign Debts, during the plenary session.
Wamakko explained that the borrowing aligns with the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) already approved for the 2025 budget.
“The proposed loans are embedded in the fiscal framework to support key sectors of the economy,” he said.
Sen. Solomon Adeola (APC-Ogun), Chairman of the Senate Committee on Appropriations, emphasized the formality of the approval, noting, “This borrowing is already captured in the 2025 Appropriation Act. With this approval, all revenue sources, including loans, are secured to fully fund the budget.”
Supporting the plan, Sen. Sani Musa (APC-Niger) highlighted its long-term scope, stating, “This borrowing spans a six-year disbursement period, not just 2025. Nigeria has a strong record of meeting loan repayments, and this aligns with global economic practices.”
Sen. Adetokunbo Abiru (APC-Lagos) added, “These are concessional loans with favorable terms, some extending up to 35 years, strictly for capital projects and human development, in compliance with the Fiscal Responsibility Act.”
However, concerns were raised by Sen. Abdul Ningi (PDP-Bauchi), who criticized the lack of clarity on repayment plans and project allocations.
“Our constituents deserve to know exactly how these funds will be used and repaid.
“We need a clear breakdown of what each state or agency will receive,” Ningi argued, citing constitutional oversight requirements.
In contrast, Sen. Victor Umeh (LP-Anambra) strongly endorsed the plan, particularly for its investment in infrastructure.
“Seeing $3 billion allocated to rebuild the eastern rail line is unprecedented. This alone justifies my support,” Umeh said.
Deputy Senate President Jibrin Barau (APC-Kano), presiding over the session, praised the committee’s work and emphasized inclusivity.
“The Renewed Hope Agenda is evident here; no region is left behind. With this approval, the 2025 budget can now be fully implemented,” Barau said, stressing that all funds must be used strictly for capital and development projects as mandated by law.
The approvals mark a significant step in Nigeria’s efforts to fund critical infrastructure and address pension obligations amid ongoing economic reforms.
