Senate Approves Tinubu’s $21B Mega Loan — Nation Gears Up for Massive Infrastructure Boom!

The Nigerian Senate has given the green light to President Bola Ahmed Tinubu’s external borrowing plan, totaling over $21 billion, for the 2025–2026 fiscal period. This approval is considered a significant step toward the complete implementation of the 2025 Appropriation Act and the realisation of key developmental objectives across the country.

According to iReporter Online, the borrowing package includes $21.19 billion in direct external loans, €4 billion in European credit facilities, and ¥15 billion from Asian lenders. Additionally, the framework comprises a $65 million grant and ₦757 billion in domestic borrowing via government bonds. The plan also outlines an effort to raise $2 billion using foreign-currency-denominated instruments within Nigeria’s financial market.

Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, presented the report, noting that the proposal was originally submitted to the National Assembly on May 27. He said delays in approval were caused by a legislative recess and pending documentation from the Debt Management Office.

Senator Olamilekan Adeola, who chairs the Senate Appropriations Committee, emphasized that the foreign loan request had already been factored into the Medium-Term Expenditure Framework (MTEF) and embedded within the 2025 budget structure. He noted that with Senate approval, all revenue projections, including those from loans, are now aligned to fully fund the national budget.

Support for the borrowing plan was widespread among lawmakers. According to iReporter Online, Senator Sani Musa explained that the disbursement of the loans will extend over six years, stressing that strategic borrowing is essential for national growth. “No economy advances without borrowing,” Musa said, affirming that Nigeria’s approach aligns with established global financial practices.

Backing this view, Senator Adetokunbo Abiru, head of the Senate Committee on Banking, Insurance and Other Financial Institutions, noted that the loans were concessional, comply with the Fiscal Responsibility Act and Debt Management Act, and are earmarked for specific capital and human development projects. He stated that many of the loans have repayment periods of 20 to 35 years.

However, concerns over accountability and equitable distribution were raised by Senator Abdul Ningi of Bauchi Central. He warned that Nigerians deserve full disclosure on how the loans will be utilized, urging lawmakers to ensure rigorous oversight. “We must be transparent with our constituents,” Ningi stressed.

The approved borrowing plan prioritizes investments in critical sectors such as infrastructure, agriculture, security, power, housing, and digital connectivity. A notable component is the $3 billion allocated for the revitalization of the Eastern Rail Corridor from Port Harcourt to Maiduguri.

Senator Victor Umeh of Anambra Central applauded the inclusion of the Eastern corridor project, calling it a historic step toward regional equity and infrastructure renewal. “This is the first time I’ve seen $3 billion dedicated to the eastern rail line. I fully support this plan,” he stated.

According to iReporter Online, Deputy Senate President Jibrin Barau commended the Local and Foreign Debt Committee for their work, describing the loan structure as nationally inclusive and reflective of the government’s Renewed Hope Agenda. Barau stressed that all borrowed funds must be directed strictly toward developmental initiatives in compliance with public finance laws.