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Senate Approves Tinubu’s $21.5 Billion Borrowing Plan, N757 Billion Pension Bond for 2025–2026

Senate Approves Tinubu’s $21.5 Billion Borrowing Plan, N757 Billion Pension Bond for 2025–2026

The Nigerian Senate has greenlit a massive $21.5 billion external borrowing plan for the 2025–2026 fiscal years, alongside a N757 billion Federal Government Bond to clear pension arrears under the Contributory Pension Scheme (CPS), as proposed by President Bola Tinubu. The approvals, made on Tuesday, July 22, 2025, aim to fund critical national projects and address long-standing pension liabilities.

Details of the Borrowing Plan
The Senate’s approval includes a $21.5 billion external borrowing package, a 15 billion Japanese Yen loan, a 65 million Euros grant, and a $2 billion foreign-currency-denominated instrument in the domestic market.

Additionally, the N757 billion bond will settle pension arrears accrued as of December 2023 for the CPS. Senator Aliyu Wamakko (APC-Sokoto North), Chairman of the Senate Committee on Local and Foreign Debts, presented the report, noting that the borrowing aligns with the 2025 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). “The MTEF and FSP contained most of the items in the borrowing plans,” Wamakko said, recommending approval based on the committee’s findings.

The Tinubu administration emphasized that the funds will drive development projects in key sectors like infrastructure, agriculture, health, education, and security. Senator Solomon Adeola (APC-Ogun West), Chairman of the Senate Committee on Appropriations, seconded the motion, stating, “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.”

Support and Concerns from Senators
Senator Sani Musa (APC-Niger East), Chairman of the Senate Committee on Finance, supported the plan, highlighting its six-year disbursement period and Nigeria’s strong repayment history. “There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” Musa said. Senator Adetokunbo Abiru (APC-Lagos East) added, “These loans are long-term, concessional, and come with favorable repayment terms. Some stretch between 20 and 35 years,” assuring compliance with the Fiscal Responsibility Act (FRA) and Debt Management Act.

However, Senator Abdul Ningi (PDP-Bauchi Central) raised concerns about transparency, noting the lack of a detailed repayment plan and project allocation breakdown. “There was need to detail how the loan sought after would be used to impact constituents,” Ningi argued, emphasizing accountability to constituents.

Public Sentiment and Implications
The approvals have sparked mixed reactions on X, with some users expressing skepticism. One post stated, “Tinubu alone will borrow: $21.5 Billion, 15 Billion Yen, 2.1 Billion Euros, 65 Million Euros (Grant). This is National Sabotage. What is Opposition doing?” (source: public X post). The funds, intended for critical sectors, are expected to boost Nigeria’s infrastructure and retiree welfare, but questions about transparency linger.

What are your thoughts on the Senate’s approval of Tinubu’s borrowing plan? Share your views in the comments

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