Senate Approves Tinubu’s $21 Billion Foreign Loan to Fund 2025 Budget
Story written by danile okafor july 23,2025
Senate Approves President Tinubu’s $21 Billion External Loan Plan for 2025 Budget Implementation
The Nigerian Senate has officially approved President Bola Tinubu’s $21.19 billion external borrowing plan to support the full implementation of the 2025 Appropriation Act. The massive loan package, which also includes additional foreign and domestic financing instruments, is part of the administration’s strategy to bridge funding gaps for the 2025–2026 fiscal cycle.
The Senate’s decision was reached following the presentation of a detailed report by Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt. The report provided an overview of the proposed loans and their alignment with Nigeria’s development financing framework.
Key Components of the Approved Loan Package:
- $21.19 billion in direct external loans
- €4 billion (euros)
- ¥15 billion (Chinese yuan)
- $65 million grant
- Additional ₦757 billion in domestic borrowing via government bonds
- Provision for up to $2 billion to be raised through foreign-currency-denominated instruments in the local market
According to Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, the bulk of the loan request had already been embedded in the Medium-Term Expenditure Framework (MTEF) and the 2025 national budget.
“With this Senate approval, all funding sources required to implement the 2025 budget—both revenues and loans—are now in place,” Adeola stated.
Background:
The foreign loan proposal was originally submitted by President Tinubu on May 27, 2025, but its review was delayed due to a legislative recess and pending documentation from the Debt Management Office (DMO).
With the greenlight from the Senate, the Tinubu administration is expected to commence the disbursement and deployment of funds toward capital projects, infrastructure development, and budgetary obligations as outlined in the 2025 fiscal roadmap.
Economic Implications:
The loan is anticipated to support key sectors including transportation, power, healthcare, and education, but economic analysts have called for caution regarding Nigeria’s rising debt profile.
