Senate approves Tinubu’s request for new $21b foreign loan despite nothing to show for current loan burden of $97b
By Jeph Ajobaju, Chief Copy Editor
Approval has been given by the Senate for Bola Tinubu’s external borrowing plan of more than $21 billion for the 2025-2026 fiscal cycle, which will raise national debt to over $118 billion by next year, even with little benefit for citizens from the current $97 billion loan burden.
Tinubu has taken more loans in his first two years as President than Muhammadu Buhari did in all of his eight years in the Villa.
Nigeria’s debt rose to $97.238 billion in the first quarter of 2025 (Q1 2025) from $94.225 billion in Q4 2024.
Tinubu argues the new loan will facilitate the full implementation of the 2025 Appropriation Act.
The package includes
- $21.19 billion in direct foreign loans comprising €4 billion, ¥15 billion, as well as $65 million grant
- $2 billion through a foreign-currency-denominated instrument in the domestic market
- ₦757 billion in domestic borrowing through government bonds
As usual – just as Senator Ali Ndume (APC, Borno South) recently groused – Tinubu did not spell out individual projects the loan will be spent on, allowing him to disburse it whichever way he wants, on relevant or wasteful items, without further recourse to legislative scrutiny or approval.
The approval on Tuesday came after the presentation of a report on the request by Senate Local and Foreign Debt Committee Chairman Aliyu Wamako.
Wamako narrated that the borrowing plan was submitted to the National Assembly (NASS) on May 27 but the vetting was delayed due to legislative recess and documentation issues from the Debt Management Office (DMO).
Senate Appropriations Committee Chairman Olamilekan Adeola said most of the loan is factored into the Medium-Term Expenditure Framework and the 2025 budget.
“The borrowing is already embedded in the 2025 Appropriation Act. With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” he explained.
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