The Nigerian Senate has approved President Bola Tinubu’s request for over $21 billion in external loans to fund key development projects during the 2025–2026 fiscal year. The approval follows delays caused by legislative recesses and bureaucratic hurdles, especially in acquiring necessary documents from the Debt Management Office (DMO).
The borrowing plan aims to finance national projects spanning infrastructure, agriculture, security, and human capital development. The Senate Committee on Local and Foreign Debt, led by Senator Aliyu Wamako, finally presented the long-awaited report during Tuesday’s plenary session in Abuja.
The comprehensive loan package includes $21.19 billion in foreign currency loans, €4 billion in euros, ¥15 billion in Japanese yen, and a $65 million grant. Additionally, the plan authorizes up to ₦757 billion in domestic borrowing through government bonds and up to $2 billion raised via foreign-currency denominated instruments in Nigeria’s local markets.
Exclusive documents obtained by SaharaReporters reveal the loans are allocated to several major projects. The African Development Bank is expected to provide $100 million for a Youth Entrepreneurship Investment initiative, slated for a five-year rollout. Other allocations include $45 million for Sokoto State’s Health Infrastructure Project and $50 million for Yobe State’s Integrated Climate Action Project.
A $250 million loan from the Export Credit Agency will fund the Lekki Access Road (7th Axial Road Project) with a three-year completion timeline. The Nigeria Border Security Project is earmarked for $540 million under a second phase of national security efforts. The Lagos-Calabar Coastal Highway will receive $700 million.
Japan’s International Cooperation Agency (JICA) will provide a ¥150 billion loan for an emergency food security program expected to conclude within a year.
China remains a significant financier, contributing $400 million toward the Lekki Access Road and $1.33 billion for the Akwanga–Jos–Bauchi–Gombe dual carriageway, planned for completion in four years. Chinese funding also covers the Eastern and Western Super Grids ($1.14 billion and $1.07 billion respectively), a $100 million Presidential Power Initiative to improve electricity distribution, and $116 million for high-voltage transmission lines from the Zungeru hydropower station.
Further allocations include $508 million for upgrading eastern port infrastructure, $2 billion for the Lagos Green Line Rail Project, and $596.2 million for rolling stock procurement on the Kaduna–Kano railway section.
The National Assembly sought additional clarifications on the loans, requesting detailed breakdowns of funding agencies, negotiation stages, project costs, and economic impact assessments, including the status of previous disbursements related to ongoing projects.
Senator Olamilekan Solomon, Chairman of the Senate Appropriations Committee, described the approval as largely procedural since many projects were already part of the Medium-Term Expenditure Framework (MTEF) and the 2025 Budget previously passed.
Reactions among lawmakers were mixed. Senator Sani Musa (Niger East) emphasized the loans cover a six-year period and noted Nigeria’s clean repayment record. Senator Adetokunbo Abiru (Lagos East) assured the loans comply with Nigeria’s Fiscal Responsibility and Debt Management Acts, strictly funding capital projects and human development.
However, Senator Abdul Ningi (Bauchi Central) raised concerns about transparency and accountability, urging the government to clearly disclose borrowing details and repayment plans to the public.
The loan proceeds will support vital national infrastructure projects, including the Eastern Rail Line from Port Harcourt to Maiduguri, power plants, digital connectivity, security, agriculture, and housing.
Senator Victor Umeh (Anambra Central) welcomed the $3 billion allocation for rebuilding the eastern rail line, calling it a major milestone for southeastern infrastructure development.
Earlier in July, the government announced securing a $747 million syndicated loan specifically for the Lagos-Calabar Coastal Highway project, marking significant progress in Nigeria’s infrastructure financing.
Source: Sahara Reporters
