Senate Approves Tinubu’s $21.5bn Foreign Loan Plan.

On Tuesday, July 22, the Nigerian Senate approved President Bola Tinubu’s extensive borrowing plan for the 2025–2026 fiscal years. The plan includes a total of $21.5 billion in foreign loans, €2.2 billion, and 15 billion Japanese Yen, along with a €65 million grant.

The Senate’s decision followed a report by Senator Aliyu Wamakko, chairman of the Senate Committee on Local and Foreign Debt. Wamakko explained that although the proposal was submitted to the National Assembly on May 27, its review was delayed due to the legislative recess and challenges in obtaining documents from the Debt Management Office (DMO).

In addition to the foreign borrowing package, the Senate also approved the issuance of domestic bonds worth ₦757.98 billion to settle unpaid pension liabilities under the Contributory Pension Scheme (CPS), some of which date back to December 2023. Lawmakers said the bond issuance aims to provide financial relief to thousands of retirees awaiting payment.

These financial measures are part of the 2025–2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), which set Nigeria’s economic and fiscal priorities for the near future.

In his letter to the National Assembly, President Tinubu emphasized the importance of the loans in funding critical sectors such as power, transport, healthcare, education, water, and agriculture. He pointed to the country’s urgent infrastructure needs and dwindling revenues, especially after the removal of fuel subsidies, as key reasons for seeking external funding.

“With a significant infrastructure gap and limited resources to bridge it—particularly amid falling domestic demand—responsible borrowing is necessary to fill the financial void,” Tinubu said.