The Nigerian Senate on Tuesday gave its nod to President Bola Tinubu’s sweeping external borrowing plan worth over $21 billion, aimed at financing a wide range of capital-intensive projects for the 2025–2026 fiscal period. The landmark approval, though procedural, stirred a heated debate in the Senate chamber over transparency, regional allocation, and long-term debt sustainability.

Delayed but Passed: Borrowing Plan Clears Senate

The long-awaited report by the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wamako, was finally presented for consideration—almost two months after it was first introduced on May 27, 2025. Its delay was largely attributed to bureaucratic hurdles and a backlog of documentation from the Debt Management Office (DMO).

The approved borrowing plan includes:

  • $21.19 billion in foreign loans

  • €4 billion (euros)

  • ¥15 billion (Japanese yen)

  • $65 million in grants

  • ₦757 billion in local bonds

  • $2 billion to be raised via foreign-currency instruments in Nigeria's domestic market

Loan Breakdown: What the Funds Will Cover

Documents obtained by SaharaReporters reveal that the funds are tied to several key projects:

  • $700 million – Lagos-Calabar Coastal Highway

  • $540 million – Nigeria Border Security Project (Phase II)

  • $508 million – Modernisation of Eastern Ports

  • $2 billion – Lagos Green Line Rail Project

  • $596.2 million – Kaduna–Kano Railway Rolling Stock

  • $1.33 billion – Akwanga–Jos–Bauchi–Gombe Road Dualisation

  • $1.14 billion & $1.07 billion – Eastern and Western Super Grids

  • $400 million – Lekki Access Road (also receiving $250 million from Export Credit Agencies)

  • $747 million – Previously secured syndicated loan for Lagos-Calabar Coastal Highway

Other sectoral allocations include:

  • $100 million – Youth Entrepreneurship (African Development Bank)

  • $45 million – Sokoto Health Infrastructure

  • $50 million – Yobe Integrated Climate Project

  • ¥150 billion – Emergency Food Security Programme (JICA)

  • $100 million – Presidential Power Initiative

  • $116 million – Transmission from Zungeru Hydropower Station

Legislative Oversight and Concerns

While the Senate Committee on Appropriations, led by Senator Olamilekan Solomon, stated the loans had already been reflected in the Medium-Term Expenditure Framework (MTEF) and 2025 Budget, not all lawmakers were satisfied.

Senator Abdul Ningi (Bauchi Central) raised concerns over transparency:

“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose. We are borrowing without breakdown or clear repayment structures,” he said, citing constitutional oversight responsibilities.

The Senate had previously requested:

  • Agency-specific funding details

  • Negotiation stages with each creditor

  • Cost-benefit analyses

  • Disbursement status for ongoing and new projects

Support from Key Senators

On the other hand, Senator Sani Musa (Niger East) clarified that the disbursement spans six years, not just the 2025 fiscal year. He also noted that Nigeria has not defaulted on its debt obligations.

Senator Adetokunbo Abiru (Lagos East), head of the Banking and Finance Committee, reassured the chamber that the loans comply with the Fiscal Responsibility Act and Debt Management Act, asserting the funds are reserved for capital and human development.

Senator Victor Umeh (Anambra Central) strongly backed the plan, lauding the $3 billion allocation for reviving the Eastern Rail Line from Port Harcourt to Maiduguri:

“This is the first time I’ve seen such a bold move to invest in Southeast infrastructure.”

Context: Infrastructure vs. Rising Debt

The Senate's decision reflects Nigeria’s urgent need to bridge its infrastructure gap amid revenue challenges. However, the borrowing adds to the country's growing debt burden, now exceeding ₦97 trillion according to the DMO’s most recent figures.

With political and economic stakes rising ahead of the 2027 elections, the borrowing plan is likely to remain a focal point in national discourse—balancing the demands of development against fiscal prudence and public accountability.