Senate approves Tinubu’s request to borrow $21bn

• $3 billion of the borrowing will be allocated to the revitalisation of the Eastern Rail Corridor, stretching from Port Harcourt to Maiduguri.

The Senate has ratified President Bola Ahmed Tinubu’s borrowing plan to fund the 2025 budget.

The ratification included the approval of his request for $21 billion loan for the 2025–2026 fiscal cycle.

The comprehensive borrowing package includes $21.19bn in direct foreign loans, €4bn, ¥15bn, a $65m grant and domestic borrowing through government bonds.

The loan request approval follows the consideration and adoption of a report of the Senate Committee on Local and Foreign Debt, presented by its Chairman, Senator Aliyu Wamakko (Sokoto North).

Also included was a provision to raise up to $2 billion through a foreign-currency-denominated instrument in the domestic market.

The loan is expected to be channelled into sectors like infrastructure, agriculture, security, power, housing, and digital connectivity.

$3 billion of the borrowing will be allocated to the revitalisation of the Eastern Rail Corridor, stretching from Port Harcourt to Maiduguri.

In his presentation, Wamakko said the plan was first submitted to the National Assembly on May 27 but was delayed due to legislative recess and documentation issues from the Debt Management Office.

In his contribution, the Deputy Senate President, Barau Jibrin (APC, Kano North), said the borrowing plan reflects national inclusiveness.

“This shows that the Renewed Hope Agenda is working. No region is left out,” he added.

Also, the Chairman of the Senate Committee on Appropriations, Senator Solomon Adeola (APC, Ogun West), said most of the loan requests had already been factored into the Medium-Term Expenditure Framework and the 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.

Similarly, the Chairman of the Senate Committee on Finance, Sani Musa (APC, Niger East), said, “There is no economy that grows without borrowing. What we are doing is in line with global best practices.”

The Chairman Senate Committee on Banking, Insurance and Other Financial Institutions, Adetokunbo Abiru (Lagos East), in his contribution, said the loans were strictly tied to capital and human development projects.