Abuja, Nigeria — The Nigerian Senate on Tuesday gave its approval to a series of major financial requests presented by President Bola Ahmed Tinubu, including an external borrowing plan of $21.5 billion, a Federal Government Bond of N757 billion to settle accrued pension rights under the Contributory Pension Scheme (CPS), and several other international financing instruments.

Also approved were a loan of 15 billion Japanese Yen and a €65 million Euro grant, alongside the president’s proposal to raise up to $2 billion through a foreign-currency denominated instrument in the domestic market.

The sweeping approvals followed the presentation of the report by the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wamakko (APC, Sokoto North).

Loan Plan Embedded in 2025 Budget Framework

According to Senator Wamakko, the loan requests are in line with Nigeria’s Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the 2025 fiscal year, which were previously approved by the National Assembly.

"The borrowing plan aligns with the national development strategy and is structured to fund critical sectors of the economy," Wamakko stated during plenary.

Senator Solomon Adeola (APC, Ogun West), Chairman of the Senate Committee on Appropriations, who seconded the motion, said the approval was essentially a legislative formality.

“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,” he explained.

Focus on National Development and Pension Settlements

One of the highlights of the Senate approval was the issuance of a Federal Government Bond worth N757 billion. This bond will be used to offset outstanding accrued rights as of December 2023 for retirees under the Contributory Pension Scheme (CPS) — a significant move expected to bring relief to thousands of retirees awaiting settlement.

The government insists that the loans and bonds are critical to financing infrastructure, healthcare, education, and other key sectors, while also managing obligations to senior citizens.

Assurances on Debt Sustainability

Responding to concerns about rising debt levels, Senator Sani Musa (APC, Niger East), Chairman of the Senate Committee on Finance, said the borrowing plan spans a six-year disbursement window, not just the 2025 fiscal year. He added that Nigeria remains in good standing on all existing loan repayments.

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

Similarly, Senator Adetokunbo Abiru (APC, Lagos East) said the loan arrangements comply with the Fiscal Responsibility Act (FRA) and the Debt Management Act.

“These loans are long-term, concessional, and come with favorable repayment terms. Some stretch between 20 and 35 years,” he said.

Opposition Raises Concerns

However, not all lawmakers were fully aligned with the decision. Senator Abdul Ningi (PDP, Bauchi Central) expressed concerns that the committee report did not clearly outline the repayment strategy or impact metrics for the loans.

“It’s important that Nigerians know how these funds will be repaid and how they will directly impact citizens at the grassroots,” Ningi stressed.

Conclusion

With this latest round of approvals, the Tinubu administration secures a crucial financing path for implementing its 2025 development agenda — though questions about debt transparency and usage remain front and center for the opposition and civil society.