Senate approves over $21 billion in external loans to plug 2025 budget shortfalls.
Nigeria’s Senate has voted in favour of President Bola Tinubu’s ambitious external borrowing plan, totalling more than $21 billion, to bridge funding gaps in the 2025 national budget. The approval encompasses loan facilities including €4 billion, ¥15 billion, a $65 million grant, and $2 billion in domestic borrowing, underpinning key sectors such as infrastructure, healthcare, education, security, and housing. A major highlight is the allocation of $3 billion for the redevelopment of a 2,044 km eastern rail corridor.
Senate Appropriations Committee Chair Solomon Adeola welcomed the approval, stating that the borrowing completes all required fiscal measures to fund the 2025 budget. The loans are intended to stimulate economic growth and support vital public projects . With the Senate nod secured, the plan will now advance to the House of Representatives for final ratification.
Critics point out that while the loans are critical for development, they come amid a backdrop of economic hardship triggered by Tinubu's previous reforms, including fuel subsidy removal and naira devaluation, which have led to soaring inflation and living costs . Analysts caution that increasing sovereign debt could compound fiscal risks if revenue projections fall short.
Supporters argue that if managed effectively, the borrowing could finance transformative projects and unlock long-term productivity gains. The success of this fiscal strategy, they say, depends on transparent implementation, debt servicing discipline, and strong oversight.
As Nigeria navigates its fourth year of Tinubu’s administration and eyes the 2027 elections, the borrowing strategy signals a shift toward fiscal expansion. Observers stress the importance of balancing short‑term relief with long‑term debt sustainability.
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