The Nigerian Senate has approved President Bola Tinubu’s ambitious external borrowing plan for 2025–2026, which includes loans totaling $21.8 billion, €2.1 billion, ¥15 billion, and a €65 million grant.
The funds are intended to support key infrastructure and development programmes across various sectors.
In addition to the external borrowing plan, the Senate also approved a domestic bond issuance worth ₦757.98 billion.
This bond is aimed at settling outstanding pension liabilities under the Contributory Pension Scheme (CPS), bringing long-awaited relief to retirees.
The approval, however, did not come without heated debate.
Lawmakers raised concerns about the sustainability of Nigeria’s ballooning debt profile, which now exceeds ₦121 trillion, with over $43 billion in external obligations.
Debt servicing currently consumes more than 90% of federal revenues.
Senator Abdul Ningi (PDP, Bauchi Central) warned that the borrowings would burden future generations.
“Generations after us will continue to pay these loans. I’ve gone through the documents and cannot find a clear repayment plan,” he said.
Supporters of the plan, such as Senators Adetokunbo Abiru and Finance Committee Chair Sani Musa, argued that the loans offer flexible terms and are tied to growth-oriented projects.
Also approved was Tinubu’s request to raise about $2 billion from the domestic market via a Foreign Currency-Denominated Instrument Local Issuance Programme.
Backed by Executive Order No. 16 of 2023, the initiative allows the Debt Management Office (DMO) to access dollar liquidity within Nigeria without increasing pressure on external reserves.
According to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, the borrowings are earmarked for high-impact projects in infrastructure, health, education, power, water supply, and the digital economy.
Supporters say the plan prioritizes job creation, economic growth, and foreign exchange inflows, distinguishing it from past borrowing sprees.
“This isn’t reckless borrowing,” a committee member stated. “It’s a strategic investment.”
Meanwhile, the Senate has scheduled a special session to honour the late former President Muhammadu Buhari.
The tribute comes after his recent passing and will reflect on his contributions to national development.
Last week, the Federal Executive Council (FEC) also held a memorial session in Buhari’s honour.
In another development, Senate President Godswill Akpabio dismissed social media claims that the Constitution Review Committee had approved the creation of new states.
He clarified that although over 42 proposals had been submitted, none had completed the legislative process.
Akpabio urged Nigerians to rely on official information from the National Assembly and cautioned communities against premature mobilisation or agitation over unverified statehood claims.
