Senate Approves Tinubu’s $21 Billion Borrowing Plan to Fund 2025 Budget

By Emmanuel Kwada

The Nigerian Senate on Tuesday, July 22, 2025, greenlit President Bola Tinubu’s ambitious plan to borrow over $21 billion from external sources to finance the 2025–2026 fiscal years, ensuring the ful implementation of the 2025 Appropriation Act. The approval, announced during a plenary session in Abuja, marks a significant step in addressing Nigeria’s budgetary needs amid economic challenges.

The borrowing package, detailed in a report by Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt, includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million grant, and domestic borrowing of approximately ₦757 billion through government bonds.

Additionally, the plan allows for raising up to $2 billion domestically via foreign currency-denominated instruments, a move aimed at diversifying funding sources.

Wamako revealed that the proposal, initially submitted to the National Assembly on May 27, 2025, faced delays due to a legislative recess and incomplete documentation from the Debt Management Office.

Following rigorous review, the Senate endorsed the plan, citing its alignment with Nigeria’s development priorities, including infrastructure, healthcare, and education.

The approval has sparked mixed reactions. Supporters argue it will bridge Nigeria’s fiscal deficit and drive economic growth, while critics, including some opposition lawmakers, warn of the risks of escalating national debt, which stood at ₦121.67 trillion as of June 2024, according to the Debt Management Office. Civil society groups have called for transparency in loan utilization.

the Senate endorsed the plan, citing its alignment with Nigeria’s development priorities, including infrastructure, healthcare, and education

As Nigeria navigates economic reforms, the Senate’s decision underscores President Tinubu’s commitment to bold financial strategies. However, analysts emphasize the need for prudent management to ensure the funds deliver tangible benefits to Nigerians.