The Senate has approved President Bola Tinubu’s $21.5 billion external borrowing plan for the 2025–2026 fiscal period, along with a ₦757 billion bond to clear pension arrears under the Contributory Pension Scheme (CPS).
The decision followed the presentation of the Senate Committee on Local and Foreign Debts by its Chairman, Senator Aliyu Wamakko (APC–Sokoto), during Tuesday’s plenary.
The approved borrowing includes:
- $21.5 billion for key national development projects,
- A 15 billion Japanese Yen loan,
- A €65 million grant, and
- Approval to raise up to $2 billion via a foreign currency-denominated bond in the domestic market.
The Senate also backed the issuance of a ₦757 billion Federal Government bond to settle outstanding CPS pension arrears as of December 2023.
Senator Solomon Adeola (APC–Ogun), who seconded the motion, said the loans had already been captured in the 2025 Appropriation Act, describing the approval as “a formality.”
Senator Sani Musa (APC–Niger) noted that the loans would be disbursed over six years and are consistent with global borrowing norms. Senator Adetokunbo Abiru (APC–Lagos) emphasised that the terms were favourable, with some extending up to 35 years.
However, Senator Abdul Ningi (PDP–Bauchi) raised concerns over the lack of detailed repayment plans and transparency for constituents.
Senator Victor Umeh (LP–Anambra) welcomed the allocation of $3 billion for the eastern rail line, while Deputy Senate President Jibrin Barau (APC–Kano) said the plan demonstrated inclusiveness under the Renewed Hope Agenda.
Barau insisted that all disbursed funds must be strictly applied to capital and development projects in accordance with public finance laws.
