Nigeria’s Senate has approved President Bola Tinubu’s request to borrow more than $21 billion (£17 billion) from foreign sources to bridge shortfalls in the 2025–2026 federal budget, clearing a major hurdle for the implementation of the Appropriation Act.
The approved package – formally presented to the National Assembly on 27 May but delayed due to recess and documentation issues – comprises $21.19 billion in foreign loans, €4 billion (£3.4 billion), ¥15 billion, a $65 million grant, and up to $2 billion in foreign‑currency domestic bonds .
Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt, said the initial submission was slowed by the legislative break and late documentation from the Debt Management Office.
His counterpart, Senator Olamilekan Adeola, added: “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.”
The borrowed funds will be channelled into critical sectors including infrastructure, agriculture, security, power, housing, health and education, with a £2.5 billion ($3 billion) earmarked specifically for rebuilding a 2,044 km eastern rail corridor from Port Harcourt to Maiduguri .
Senator Sani Musa clarified that the disbursement will stretch over six years, not just 2025, and defended the move as consistent with international economic norms, stating: “There’s no economy that grows without borrowing. What we are doing is in line with global best practices.”
Senator Adetokunbo Abiru, who chairs the Banking Committee, underscored the loans’ favourable terms, noting that most have 20‑ to 35‑year tenors, are concessional, and comply with both the Fiscal Responsibility and Debt Management Acts .
However, concerns were raised over transparency and equitable fund distribution.
Senator Abdul Ningi urged that “Nigerians deserve to know exactly how much is being borrowed in their name, and for what purpose.”
He was backed by Senator Victor Umeh, who welcomed the railway allocation as historic: “This is the first time I have seen $3 billion allocated to rebuild the eastern rail line. That alone justifies my full support.”
Deputy Senate President Jibrin Barau praised the exercise for reflecting Tinubu’s inclusive “Renewed Hope Agenda”, assuring that no region is being left behind, and affirmed that the funds must strictly be used for capital and development projects.
The plan now heads to the House of Representatives for final approval, poised to bolster Nigeria’s fiscal capacity amid growing economic challenges.