By Erewunmi Peace

The Nigerian Senate has officially approved President Bola Ahmed Tinubu’s request to secure over $21 billion in foreign loans as part of his 2025–2026 borrowing plan aimed at boosting national development.

The Senate’s decision, made during plenary on Monday, July 22, follows months of deliberation and scrutiny of the proposed borrowing framework. The approval includes a combination of long-term concessional loans and grants from international development partners and financial institutions.

Breakdown of the Loan Package:

$21.19 billion in foreign loans

€4 billion

¥15 billion

$65 million in grants

₦757 billion from the domestic market through bonds

An additional $2 billion via domestic foreign-currency securities

Senate President Godswill Akpabio emphasized that the loan request aligns with the 2025 national budget, the Medium-Term Expenditure Framework (MTEF), and Nigeria’s broader development goals. The approved funds are expected to be channeled into key sectors such as infrastructure, agriculture, power, digital economy, housing, and national security.

One notable component of the borrowing plan is the $3 billion earmarked for the Eastern rail corridor, which will run from Port Harcourt to Maiduguri, boosting regional connectivity and economic activity.

According to Senate spokespersons, the loans are structured to come from development institutions like the World Bank, African Development Bank (AfDB), and the Islamic Development Bank (IDB) at concessional terms, making repayment manageable and sustainable under current fiscal conditions.

“This loan is strategic for national growth. It’s not reckless borrowing — it is guided borrowing for transformational projects,” a Senate committee member said during the debate.

However, the decision has not gone without criticism. Some economists and civil society groups have raised concerns about Nigeria’s rising debt profile and the potential long-term implications on the economy. As of mid-2025, Nigeria’s public debt stands at over ₦121 trillion, including both domestic and external borrowings.

President Tinubu’s administration has maintained that the loan will stimulate growth, create jobs, and improve public infrastructure, especially in underserved regions of the country.

Implementation is expected to begin in Q4 2025, with various ministries and agencies already preparing project execution plans in line with the approved borrowing.

As Nigerians react to this latest development, all eyes remain on the Federal Government’s ability to ensure transparency, accountability, and impact in the utilization of the borrowed funds.