In a critical move to support the implementation of the 2025–2026 Appropriation Act, the Nigerian Senate has given its approval for President Bola Ahmed Tinubu’s request to borrow over $21 billion (approximately £17 billion) from foreign lenders.
The Senate’s endorsement, which followed weeks of deliberation and review, is aimed at addressing projected revenue shortfalls in the federal budget and ensuring the execution of key infrastructural and developmental projects.
Senate President Godswill Akpabio, while confirming the approval during plenary on Tuesday, stated that the foreign loan was necessary to bridge the gap between revenue expectations and expenditure obligations, as outlined in the 2025–2026 fiscal framework.
“This borrowing plan is tied to critical infrastructure, energy, transport, health, education, and other capital projects across the country,” Akpabio noted.
“The Senate is mindful of the debt implications but also recognizes the urgent need to stimulate the economy and deliver essential services.”
President Tinubu had earlier submitted a formal request to the National Assembly outlining the borrowing plan, which is part of a broader medium-term external borrowing strategy.
The government assured lawmakers that all loans would be sourced on concessional terms and repaid over extended periods to minimize fiscal pressure.
However, the decision has sparked debate among economists, civil society groups, and opposition lawmakers, who have raised concerns about Nigeria’s rising debt profile and the sustainability of continued foreign borrowing.
As of 2024, Nigeria’s public debt stood at over ₦97 trillion, with foreign debt accounting for a significant portion. Critics warn that further borrowing could push the nation toward a debt crisis, especially in the absence of robust fiscal reforms and improved revenue generation.
Despite these concerns, the Tinubu administration insists that the loans are essential to close financing gaps and meet the demands of a growing population in need of infrastructure, security, and social services.
With Senate approval now secured, the Presidency is expected to engage with international financial institutions and bilateral partners to access the funds in phases, based on project readiness and
disbursement terms.
