By Ono Yima
Approval Sparks Debate on Transparency, National Debt, and Regional Development The Senate on Tuesday approved President Bola Tinubu’s external borrowing plan of over $21 billion as part of the Federal Government’s 2025–2026 borrowing strategy.
The comprehensive plan includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million grant, and N757 billion in domestic borrowing via government bonds. It also permits raising up to $2 billion through a foreign-currency instrument in the domestic market.
The approval followed the adoption of a report by the Senate Committee on Local and Foreign Debts presented by Senator Aliyu Wamako. He explained that the plan, first submitted on May 27, was delayed due to recess and document issues.
Senator Solomon Adeola, Chair of the Appropriations Committee, stated that most of the loan items were already factored into the 2025 budget. “With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” he said.
Senator Mohammed Sani Musa clarified that the disbursement would span six years, aligning with global practices. Senator Tokunbo Abiru assured that the loans are concessional, with tenors of 20–35 years, and tied to developmental projects.
However, Senator Abdul Ningi raised concerns about transparency and equitable distribution. “We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” he said.
Key sectors include infrastructure, agriculture, security, power, housing, and digital connectivity. A highlight is the $3 billion allocated for revitalising the Eastern Rail Corridor from Port Harcourt to Maiduguri.
Senator Victor Umeh praised the eastern rail allocation, calling it “a historic investment.” Deputy Senate President Barau Jibrin said the plan shows inclusiveness. “This shows that the Renewed Hope Agenda is working. No region is left out,” he concluded.