The Nigerian Senate has approved President Bola Ahmed Tinubu’s request to secure over $21 billion in foreign loans to support the full execution of the 2025 Appropriation Act.

The approval was granted on Tuesday following the presentation of a report by Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt. The borrowing plan also includes €4 billion, ¥15 billion, a $65 million grant, and ₦757 billion in domestic borrowing through government bonds.

 Additionally, the Senate approved a provision to raise $2 billion through a foreign-currency-denominated instrument within the domestic market.

Senator Wamako noted that the request, first submitted on May 27, had faced delays due to the National Assembly’s recess and documentation issues from the Debt Management Office.

Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola, explained that the loans had already been factored into the Medium-Term Expenditure Framework (MTEF) and were crucial to fully funding the 2025 national budget.

 “With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” Adeola stated.

Defending the approval, Senator Sani Musa said the loan disbursement would span six years, adding that the move aligns with international economic standards.

 “There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said.

Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, assured that the loans are concessional, adhere to the Fiscal Responsibility Act, and are strictly targeted at capital and human development projects, with repayment periods ranging from 20 to 35 years.

The borrowing plan prioritizes sectors including infrastructure, agriculture, power, housing, security, and digital connectivity.

 Notably, $3 billion has been allocated to the revitalization of the Eastern Rail Corridor, linking Port Harcourt to Maiduguri.

Reacting to the allocation, Senator Victor Umeh (Anambra Central) praised the move, saying “This is the first time I have seen $3 billion allocated to rebuild the Eastern rail line. That alone justifies my full support.”

Deputy Senate President Jibrin Barau commended the committee’s work, describing the borrowing plan as a reflection of national inclusiveness.

 “This shows that the Renewed Hope Agenda is working. No region is left out,” he said.

Senate leadership emphasized that all borrowed funds must be deployed strictly for development projects and managed in line with public finance regulations and accountability mechanisms.