Senate Approves Over $21 Billion in Foreign Loans to Fund 2025 National Budget.
Nigeria’s Senate has approved President Bola Tinubu’s external borrowing plan, amounting to more than $21 billion to finance shortfalls in the 2025 national budget. The package includes €4 billion (approx. $4.7 billion), ¥15 billion (about $102 million), a $65 million grant, and $2 billion in naira‑denominated domestic borrowing.
The funds are earmarked for critical sectors such as infrastructure, healthcare, education, security, and housing, with $3 billion specifically dedicated to redeveloping a 2,044 km narrow‑gauge railway in the eastern corridor of Nigeria . This move marks a strategic shift toward fiscal expansion amidst revenue constraints.
Since entering office in 2023, Tinubu has initiated significant reforms—including removal of fuel subsidies and naira devaluation—which, while necessary, have triggered inflation and a rising cost of living. Analysts say the borrowing reflects a desire to stimulate growth, even as government revenues stay under pressure.
Next, the House of Representatives is expected to vote on the borrowing package. Economic experts warn that while the funds may provide short‑term relief, careful monitoring and transparency will be essential to prevent debt misallocation or long‑term fiscal vulnerability.
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