The Nigerian Senate has endorsed a new external borrowing strategy submitted by President Bola Tinubu for the 2025–2026 fiscal cycle. The plan includes a request to secure $21.8 billion, €2.1 billion, and ¥15 billion in foreign loans, along with a €65 million grant, aimed at funding major development projects across health, education, transport, and other sectors.
Alongside the foreign loans, lawmakers also approved the issuance of a ₦757.98 billion bond in the domestic market to clear outstanding pension arrears owed under the Contributory Pension Scheme. This measure, officials say, is designed to provide relief to retirees and reduce exposure to foreign debt risk.
The legislative session, however, was not without disagreement. Some senators voiced concerns about the nation’s growing debt burden, with Senator Abdul Ningi of Bauchi Central warning about the lack of a transparent repayment plan. He cautioned that future generations could be saddled with unsustainable obligations.
Supporters of the proposal, including Finance Committee Chairman Sani Musa and Senator Adetokunbo Abiru, defended the initiative. They argued that the loans were structured to finance growth-enhancing sectors and were essential for Nigeria’s long-term economic stability.
The Senate also gave the green light to a separate request to raise $2 billion through a Foreign Currency-Denominated Instrument Local Issuance Programme, which would allow the Debt Management Office (DMO) to tap into dollar liquidity within the country without placing additional strain on external reserves.
This borrowing framework comes as Nigeria’s total public debt exceeds ₦121 trillion, with external obligations above $43 billion. According to fiscal analysts, more than 90% of the country’s revenue is now channeled into servicing debt, prompting broader calls for fiscal caution and better transparency.
Meanwhile, in a related development, Senate President Godswill Akpabio used the session to address growing speculation about new state creation. He urged Nigerians to dismiss circulating reports suggesting that the Constitution Review Committee had approved the formation of additional states, clarifying that such proposals had not passed through the necessary legislative stages.
In a separate announcement, the Senate also revealed plans to hold a special plenary session in honor of former President Muhammadu Buhari, who recently passed away. Lawmakers are expected to reflect on his years of service and legacy during the event.
