The Nigerian Senate has approved President Bola Ahmed Tinubu’s request to secure over $21 billion in foreign loans, aimed at funding key infrastructure projects and supporting the implementation of the 2025 national budget.

The Senate gave the green light during plenary on Tuesday, July 23, after adopting the recommendations of its Committee on Local and Foreign Debts. The facility includes a combination of concessional loans, grants, and foreign currency bonds to be sourced from multilateral institutions and the international capital market.

According to the breakdown, the loan package comprises:

€4 billion (approximately $4.7 billion),

¥15 billion (about $102 million), and

A $65 million grant component.

It also includes provisions for raising $2 billion in foreign currency-denominated bonds locally.

The funds will be used to support major projects in key sectors such as infrastructure, transportation, health, education, security, energy, agriculture, and digital technology. Notably, $3 billion has been earmarked for the Eastern Railway Corridor, covering the Port Harcourt–Maiduguri route, seen as a strategic move to boost trade and mobility across Nigeria’s southeastern and northeastern zones.

Chairman of the Senate Committee on Local and Foreign Debts, Senator Haruna Manu, explained that the borrowing plan is part of the 2022–2024 borrowing strategy, which had been revised to align with the federal government's Medium-Term Expenditure Framework (MTEF) and the 2025 national budget projections.

“The terms and conditions of the loan are concessional and in line with global best practices. The repayment terms offer Nigeria some flexibility, and the proceeds will directly address infrastructural deficits and support inclusive growth,' Manu stated.

Lawmakers emphasised that the loans are tied to specific development projects and are not meant for recurrent expenditure. The Senate leadership also assured Nigerians that proper oversight would be carried out to ensure transparency and accountability in the deployment of the funds.

This approval comes at a time when Nigeria continues to battle rising inflation, currency devaluation, and reduced oil revenues. President Tinubu's administration has argued that external borrowing is a necessary fiscal tool to bridge funding gaps and stimulate economic recovery.

The House of Representatives is expected to give concurrent approval to the loan request in the coming days.

Reported by the Ipledge2Nigeria Web Team
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Tinubu Secures Senate Approval for $21bn Foreign Loan Package

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