The Nigerian Senate on Tuesday, granted approval to President Bola Ahmed Tinubu’s request to borrow over $21 billion from external sources to finance the 2025 and 2026 fiscal years, paving the way for the full implementation of the 2025 Appropriation Act.
The Senate’s greenlight covers a comprehensive loan package, including $21.19 billion in direct foreign borrowing, €4 billion, ¥15 billion, and a $65 million grant. Additionally, the borrowing plan includes domestic funding of about ₦757 billion through government bonds, and an option to raise up to $2 billion from the local market via a foreign currency-denominated instrument.
The approval followed the submission and adoption of a report by Senator Aliyu Magatakarda Wamakko, Chairman of the Senate Committee on Local and Foreign Debt. According to the report, the borrowing plan was first presented to the National Assembly on May 27, 2025. However, legislative deliberation was delayed due to a recess and incomplete documentation from the Debt Management Office (DMO) and the Federal Ministry of Finance.
Senator Wamakko explained that the loans would be sourced from multilateral and bilateral institutions and are crucial for critical infrastructure, social programmes, and other developmental projects embedded in the 2025 budget.
Lawmakers who supported the motion emphasized the need for adequate funding to bridge Nigeria’s growing infrastructure gap and support economic growth. However, some senators voiced concerns over the country’s rising debt profile and urged for transparency and prudent utilization of the borrowed funds.
The loan approval marks another milestone in the Tinubu administration’s economic strategy aimed at stimulating development, though it reignites public debate over Nigeria’s long-term debt sustainability.

