The Senate on Tuesday July 22, approved President Bola Tinubu’s comprehensive borrowing plan for the 2025-2026 fiscal period.
The plan included a combined external loan package of $21.5 billion, €2.2 billion, and 15 billion Japanese Yen, as well as a €65 million grant.
The borrowing plan was passed during plenary on Tuesday, following the presentation of a report by Aliyu Wamakko, chairman of the senate committee on local and foreign debt.
Wamakko said the request, initially submitted to the national assembly on May 27, was delayed due to the parliament’s recess and challenges in securing documentation from the Debt Management Office (DMO).
Additionally, the Senate endorsed a N757.98 billion domestic bond issuance to settle outstanding liabilities under the Contributory Pension Scheme (CPS), some of which date back to December 2023.
The red chamber said the approval was to bring relief to thousands of retirees affected by payment delays. The Senate maintained that the foreign borrowing plan and domestic bond issuance were key components of the 2025–2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), documents that outline Nigeria’s fiscal direction for the coming years.
President Tinubu, in his correspondence to the National Assembly, described the loans as essential for driving growth across vital sectors, including power, transport, health, education, water, and agriculture.
He highlighted the urgency of addressing the country’s massive infrastructure shortfall, especially following the removal of fuel subsidies, which had strained government revenues and increased pressure on citizens.
“In light of the significant infrastructure deficit in the country and the paucity of financial resources needed to address this gap amid declining domestic demand, it has become essential to pursue prudent economic borrowing to close the financial shortfall,” President Tinubu stated.
