Abuja, July 27, 2025 — The Nigerian Senate has granted approval to President Bola Ahmed Tinubu’s contentious request for over $21 billion in foreign loans to finance critical infrastructure and developmental projects in the 2025–2026 fiscal period.
The Senate’s endorsement followed an extensive deliberation during plenary on Friday, where lawmakers examined the president’s submission within the Medium-Term External Borrowing Plan. The approved sum, estimated at $21.1 billion, forms part of the administration’s strategic borrowing framework to fund sectors such as power, rail, roads, health, water, and education, as well as to close fiscal gaps in the federal budget.
Senate President Godswill Akpabio, who presided over the session, stated that the loan will be sourced through concessional arrangements with multilateral lenders like the World Bank, African Development Bank (AfDB), and Islamic Development Bank (IDB), among others, at interest rates considered favorable.
The approval, however, sparked concerns from opposition senators and economic analysts who fear the increasing debt profile could pose long-term risks to the country’s fiscal stability. Critics also raised questions about the transparency and accountability of past borrowings, citing limited evidence of impact on public welfare.
Nonetheless, supporters of the motion argued that the loans are necessary to stimulate economic recovery, create jobs, and bridge Nigeria’s massive infrastructure deficit, especially as the country navigates the post-subsidy economic transition.
Nigeria’s public debt currently stands at over N121 trillion (approx. $85 billion), including both domestic and external borrowings. The Tinubu administration has maintained that its borrowing strategy is anchored on sustainability, productivity, and the assurance of returns on investment through targeted national projects.
The presidency is expected to outline a detailed disbursement and project execution framework in the coming weeks to assure stakeholders and international partners of prudent loan utilization.
