The Nigerian Senate has officially approved President Bola Ahmed Tinubu’s request to borrow a total of $21.19 billion from foreign sources as part of efforts to finance the 2025 Appropriation Act. The comprehensive loan package also includes €4 billion, ¥15 billion, and a $65 million grant component.
In addition to the foreign loans, the federal government will source ₦757 billion through domestic borrowing and raise a $2 billion foreign-currency denominated instrument to support budget implementation.
The Senate's approval followed the presentation and adoption of a report by the Senate Committee on Local and Foreign Debts. According to the committee, the loans are primarily concessional—offering low interest rates and extended repayment terms—and will be channeled into critical infrastructure and development projects across various sectors.
One of the headline projects is the $3 billion earmarked for the Eastern Rail Corridor, a long-anticipated rail infrastructure expected to stimulate economic growth in the southeastern part of the country and enhance national connectivity.
Despite the green light, the loan request stirred debate within the red chamber. Several lawmakers raised concerns about transparency, project monitoring, and the fair distribution of projects funded by the loans. They cautioned that while borrowing might be necessary for development, it must not plunge the nation deeper into unsustainable debt without corresponding economic returns.
Senate President Godswill Akpabio urged the executive to ensure strict accountability in the use of the funds and reassured Nigerians that the National Assembly would carry out oversight functions to prevent misuse and ensure value for money.
With this development, the Tinubu administration moves a step closer to executing its ambitious 2025 budget, which hinges significantly on external and domestic financing to bridge revenue gaps and push for infrastructure renewal.
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