By Abiola Olawale
The Nigerian Senate has approved President Bola Tinubu’s external borrowing plan, totaling $24 billion (equivalent to ₦38.4 trillion at an exchange rate of ₦1,600 per USD) for the 2025–2026 fiscal years.
The plan, which includes $21.5 billion, €2.2 billion (₦5.6 trillion at ₦2,545 per EUR), ¥15 billion (₦150 billion at ₦10 per JPY), and a €65 million grant (₦165 billion), was said to be aimed at addressing critical infrastructure deficits, stimulating economic growth, and enhancing social welfare across the nation.
According to the Senate, the funds are intended to support various national development projects across key sectors, including infrastructure, security, agriculture, and human capital development.
During plenary on Tuesday in Abuja, Chairman Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, presented the long-awaited report, which was first introduced on May 27, 2025.
The delay in its adoption was attributed to parliamentary recesses and challenges in obtaining documentation from the Debt Management Office (DMO).
Chairman of the Senate Committee on Appropriations, Senator Olamilekan Solomon (Ogun West), in his address also noted that the approval was largely procedural, as most of the items had already been incorporated into the Medium-Term Expenditure Framework (MTEF) and the 2025 Budget previously passed by the Senate.
“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,” Adeola said.
The New Diplomat reports that the development comes after DMO recently revealed that Nigeria’s debt profile stood at ₦144.7 trillion ($94.2 billion) as of December 2024, with external debt accounting for 48.6% (₦70.3 trillion).
The cost of debt servicing has surged, reaching ₦13.12 trillion in 2024, a 68% increase from ₦7.8 trillion in 2023.
