President Bola Tinubu has submitted a request to the Nigerian Senate seeking approval for an external borrowing plan amounting to $21.5 billion.
The proposed loan, covering the 2025–2026 fiscal years, is aimed at funding high-impact national development projects across multiple sectors of the economy, including infrastructure, power, education, healthcare, agriculture, and water resources.
The borrowing request was contained in a letter transmitted to the Senate President and read on the floor of the Senate on Tuesday.
In the letter, President Tinubu explained that the external loan is part of the Federal Government’s 2025–2027 Medium-Term External Borrowing Plan, which outlines the strategy to secure funding from multilateral and bilateral development partners on concessional and semi-concessional terms.
According to Tinubu, the funds would be sourced from reputable international lenders such as the World Bank, African Development Bank, Islamic Development Bank, and French Development Agency, among others.
The borrowing, he added, will target infrastructure projects with long-term economic returns, including nationwide power grid upgrades, the expansion of railway and road networks, rural electrification, educational infrastructure, and irrigation systems for agriculture.
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Some of the proposed projects under the plan include the Lagos-Calabar Coastal Highway, the Mambilla Hydroelectric Power Project, school rehabilitation and teacher training programs, revitalization of teaching hospitals, and clean water projects in underserved communities.
The President emphasized that the loans would be tied to specific projects with measurable outcomes and repayment plans.
He also assured lawmakers that the government remains committed to maintaining debt sustainability by ensuring that new loans are used efficiently and transparently.
The request has sparked mixed reactions among lawmakers and financial analysts. While some Senators welcomed the proposal as necessary for economic revitalization and job creation, others expressed concern over the country’s rising public debt, which currently exceeds ₦97 trillion, according to the Debt Management Office.
Senate deliberations on the request are expected to begin next week, with the leadership promising a thorough review of the loan terms, the selection of projects, and the feasibility of implementation before granting approval.
President Tinubu urged the National Assembly to act swiftly, stating that delays in funding could hinder critical timelines for infrastructure delivery and economic recovery.
NAN
