The Nigerian Senate has approved a large-scale borrowing plan submitted by President Bola Ahmed Tinubu, aimed at funding critical national projects in the 2025–2026 fiscal period.
The approval came during plenary on Tuesday, July 22, following the presentation of a detailed report by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt.
The borrowing proposal comprises multiple financial instruments: $21.5 billion and €2.2 billion in external loans, 15 billion Japanese Yen, and a €65 million grant from development partners.
In addition to the foreign loans, the Senate also gave the green light for a ₦757.98 billion domestic bond issuance, intended to offset outstanding liabilities under the Contributory Pension Scheme (CPS). Some of these unpaid pension arrears date back to December 2023. The Senate emphasized that the bond would bring much-needed relief to thousands of retirees who have suffered prolonged delays in receiving their entitlements.
Senator Wamakko explained that although the request was first submitted by President Tinubu on May 27, its consideration was delayed due to the National Assembly’s recess and challenges in receiving the necessary documentation from the Debt Management Office (DMO).
According to the Senate, both the foreign borrowing package and the domestic bond issuance form integral parts of the 2025–2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP)—documents that chart Nigeria’s fiscal policy direction for the medium term.
In his letter to the National Assembly, President Tinubu justified the borrowing plan as a critical step toward financing key development sectors such as infrastructure, power, transportation, health, education, water resources, and agriculture.
He stressed that the loans would help cushion the economic impact of recent policy reforms, particularly the removal of fuel subsidies, which has placed considerable financial pressure on citizens and reduced government revenue.
“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,” Tinubu stated in his message.
The Senate’s approval signals a major step in the administration’s efforts to stimulate economic recovery and development through targeted investments, while also attempting to resolve longstanding pension-related obligations.