Debt Or Development? Senate Backs Tinubu’s $21.5 Billion External Loan Plan

The Senate also endorsed additional financial instruments, including a 15 billion Japanese Yen loan, a €65 million grant, and the issuance of a Federal Government Bond worth N757 billion to clear accrued pension arrears under the Contributory Pension Scheme (CPS) as of December 2023.

According to iReporter Online, part of the approval includes permission for the federal government to raise up to $2 billion via foreign-currency denominated bonds within the domestic market. The Senate’s nod followed a report presentation by Senator Aliyu Wamakko, Chairman of the Committee on Local and Foreign Debt, who clarified that the borrowing aligns with the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), which lay the foundation for the 2025 budget.

Senator Solomon Adeola emphasized that the borrowing is already embedded within the 2025 Appropriation Act and is essential for full budget implementation. Senator Sani Musa defended the borrowing strategy, noting it would be spread across six years and was consistent with international best practices. Senator Adetokunbo Abiru added that the loans are concessional and come with favorable repayment terms ranging from 20 to 35 years.

Although the initiative received broad support, Senator Abdul Ningi expressed concern over the lack of explicit repayment strategies and called for future clarity on grassroots impact.

Meanwhile, Senator Victor Umeh lauded the allocation of $3 billion for the eastern rail line reconstruction as a significant milestone.

According to iReporter Online, Deputy Senate President Jibrin Barau praised the inclusive nature of the plan, stating it ensures no region is left behind. With the approvals now in place, he affirmed that the implementation of the 2025 Appropriation Act could commence in earnest.

”IREPORTER REPORTS”