The Senate on Tuesday approved President Bola Tinubu’s external borrowing plan of over $21 billion for the 2025–2026 fiscal cycle, paving the way for the full implementation of the 2025 Appropriation Act.

The comprehensive borrowing package includes $21.19bn in direct foreign loans, €4bn, ¥15bn, a $65m grant and domestic borrowing through government bonds totalling approximately ₦757bn.

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

The approval followed the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, who noted that 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.

The Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola, 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 explained.

While the approval drew broad support, it also raised concerns.

Senator Sani Musa clarified that the loan disbursement would span six years, not just 2025.

He defended the borrowing, saying it aligns with global economic practices.

“There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said.

Senator Adetokunbo Abiru, who chairs the Committee on Banking, Insurance and Other Financial Institutions, assured the chamber that the loans are concessional and adhere to the Fiscal Responsibility Act and Debt Management Act.

“These loans are long-term, some with tenors ranging from 20 to 35 years, and they are strictly tied to capital and human development projects,” he said.

However, Senator Abdul Ningi (Bauchi Central) voiced concerns over transparency and equitable distribution, warning that Nigerians deserve to know the specifics of the loans and their intended impact.

“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said.

Among the key sectors targeted in the loan plan are infrastructure, agriculture, security, power, housing, and digital connectivity.

A major highlight is the allocation of $3bn for the revitalisation of the Eastern Rail Corridor, stretching from Port Harcourt to Maiduguri.

Senator Victor Umeh (Anambra Central) hailed the rail project as a milestone, saying, “This is the first time I have seen $3bn allocated to rebuild the eastern rail line. That alone justifies my full support.”

Deputy Senate President, Jibrin Barau, commended the committee’s efforts and stressed that the borrowing plan reflects national inclusiveness.

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

Senate leadership maintained that all funds must be deployed strictly for capital and development projects, in line with public finance regulations.