BREAKING: Senate Approves Fresh $21bn Loan for President Tinubu

The Senate has approved President Tinubu’s “$21bn external loan plan” to fully fund the 2025 budget, including key projects like the “$3bn Eastern Rail Corridor”.

The Senate on Tuesday approved President Bola Tinubu’s external borrowing plan of over “$21bn for the 2025–2026 fiscal cycle”, clearing a major hurdle for the full implementation of the 2025 Appropriation Act.

The borrowing package includes “$21.19bn in direct foreign loans”, “€4bn, ¥15bn”, a “$65m grant”, and domestic borrowing through government bonds totalling approximately “N757bn”. It also provides for raising up to “$2bn” through a foreign-currency-denominated instrument within the domestic market.

The approval followed the submission of a report by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt. Wamakko explained that the request, first presented on May 27, was delayed due to the legislative recess and documentation issues from the Debt Management Office.

Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, emphasized that most of the borrowing had already been factored into the “Medium-Term Expenditure Framework and the 2025 budget”, adding that the Senate’s green light ensures that “we now have all revenue sources, including loans, in place to fully fund the budget.”

While the plan received general support, some lawmakers expressed concerns over transparency and accountability.

Senator Sani Musa clarified that the loan would be disbursed over six years, not just in 2025, and said it aligns with “global best practices” in public finance.

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Senator Adetokunbo Abiru assured the chamber that the loans are concessional and tied strictly to long-term capital and human development projects, in line with the “Fiscal Responsibility Act” and “Debt Management Act.”

However, Senator Abdul Ningi urged for more transparency, insisting: “We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose.”

The borrowing will fund critical sectors including infrastructure, agriculture, security, housing, power, and digital connectivity. A notable allocation is “$3bn” for the revitalisation of the Eastern Rail Corridor from Port Harcourt to Maiduguri.

Senator Victor Umeh hailed the allocation as historic: “This is the first time I have seen $3bn allocated to rebuild the eastern rail line.”

Deputy Senate President Jibrin Barau praised the plan’s inclusiveness, saying: “This shows that the Renewed Hope Agenda is working. No region is left out.”

The Senate stressed that all funds must be deployed in strict accordance with public finance regulations and development priorities.