By Dr. G. Fraser. MFR HeadlineNews Political & Economic Desk | July 24, 2025
Abuja, Nigeria
In a decisive move to fund critical infrastructure and fulfill legacy obligations, the Nigerian Senate on Tuesday approved President Bola Ahmed Tinubu’s $21.5 billion external borrowing plan as part of the 2025–2026 fiscal strategy. The Senate also greenlit the issuance of a ₦757 billion Federal Government bond to clear pension arrears under the Contributory Pension Scheme (CPS), along with other concessional loans and grants from international partners.
The approval comes as part of the broader framework of the 2025 Appropriation Act and the Medium-Term Expenditure Framework (MTEF), with lawmakers affirming that the loans are vital to bridging Nigeria’s infrastructure gap and protecting social stability.
What Was Approved
✔️ $21.5 billion external loan (for projects across key sectors including transportation, power, health, and agriculture)
✔️ 15 billion Japanese Yen and 65 million Euros in grant/loan packages
✔️ $2 billion capital raise through foreign currency instruments in the domestic market
✔️ ₦757 billion pension bond issuance to pay accrued pension rights up to December 2023
The Justification: Development, Not Dependency
Presenting the report on the Senate floor, Senator Aliyu Wamakko (Chairman, Senate Committee on Local and Foreign Debts) emphasized that these borrowing plans are not new—they form part of Nigeria’s already approved fiscal roadmap. According to him, “the loans are targeted at funding capital projects that will drive economic growth and social infrastructure.”
“This is not blind borrowing. It’s investment-backed. Most of these loans are already embedded in the 2025 budget and MTEF,”
— Sen. Solomon Adeola, Chairman, Senate Committee on Appropriations
Borrowing: A Global Economic Tool
The borrowing plan, covering a six-year disbursement window, aligns with global economic practices, according to Senator Sani Musa (APC-Niger):
“There’s no economy that grows without borrowing. As long as we stay within sustainable thresholds and channel funds wisely, borrowing becomes a tool—not a trap.”
Senator Adetokunbo Abiru (APC-Lagos) added that the loan packages comply with the Fiscal Responsibility Act and the Debt Management Act, noting that many of the agreements are concessional, with repayment terms spanning 20 to 35 years.
Opposition Voices: Transparency Still an Issue
However, the debate was not one-sided. Senator Abdul Ningi (PDP-Bauchi) cautioned that the borrowing plan lacked granular breakdowns, especially on how the funds would be distributed and repaid:
“We owe our constituents clarity. How much are we borrowing in their names, and for what? That should be spelled out—state by state, project by project.”
His concerns echo longstanding public anxiety about Nigeria’s rising debt levels and the historical lack of accountability in how borrowed funds are managed.
Pension Bond: Righting Past Wrongs
In what has been described as a bold commitment to social justice, the Senate also approved the issuance of ₦757 billion in bonds to clear outstanding pension arrears under the CPS. This move is expected to benefit tens of thousands of retirees, restoring faith in the pension system and easing the burden on families affected by unpaid entitlements.
“This is more than fiscal housekeeping—it’s about honouring promises made to those who served the nation,”
— Dr. G. Fraser, MFR, Governance Strategist & Consultant, Perception Management Expert.
Infrastructure Spotlight: Eastern Corridor Finally Gets Attention
In a moment of bipartisan alignment, Senator Victor Umeh (LP-Anambra) threw his full support behind the plan, citing the $3 billion allocation for the Eastern rail line reconstruction as a milestone:
“This is the first time I’ve seen real figures committed to the East. That alone justifies this borrowing.”
Debt Context: Is Nigeria Safe?
As of Q1 2025, Nigeria’s public debt stood at ₦97 trillion, according to the Debt Management Office (DMO). However, experts argue that Nigeria’s Debt-to-GDP ratio of approximately 37% still falls within sustainable limits compared to African peers like Kenya (67%) and Ghana (78%).
That said, the issue remains debt servicing, with over 60% of revenues going toward interest payments in past years. Analysts say this highlights the urgent need to expand revenue sources and improve the efficiency of capital spending.
Final Word: Renewed Hope or Recycled Mistakes?
Deputy Senate President Jibrin Barau (APC-Kano), who presided over the session, framed the approvals as an extension of Tinubu’s Renewed Hope Agenda, stating:
“This shows that the Renewed Hope Agenda is working. No region is left behind. But we must ensure full transparency and strict adherence to public finance laws.”
Conclusion: Borrowing with Purpose?
The Senate’s approval sets the stage for the full implementation of the 2025 Appropriation Act, but it also raises the bar on expectations for transparency, performance, and return on debt. As the Tinubu administration moves forward, Nigerians—and the international community—will be watching closely to see whether this is borrowing for growth, or another addition to the national debt spiral.
Report by Amiida F.
[ The National Patriots] HeadlineNews.News Political & Economic Desk
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Headlinenews.news Commentaries.
“No Growth Without Sacrifice: Tinubu’s Borrowing Plan Gets Senate Nod for 2025 Agenda”
Excerpt:
With Senate approval of his $21.5 billion borrowing proposal and ₦757 billion pension bond issuance, President Tinubu now holds the full financial toolkit to activate his infrastructure-heavy Renewed Hope Agenda.
Quote:
“We cannot build a great nation on broken roads, empty silos, and unpaid debts. We must borrow responsibly today to build the prosperity of tomorrow.”
— President Bola Ahmed Tinubu, during 2025 Budget Presentation to the National Assembly
Comment:
This is more than a fiscal move—it’s a leadership statement. The challenge now is translating borrowed billions into visible, measurable impact for Nigerians.
Commentaries from Global & African Leaders of thought on the Senate’s approval of President Tinubu’s $21.5 billion borrowing plan and ₦757 billion pension bond issuance and the implications.
“Senate Greenlights $21.5 Billion Loan Plan: Tinubu’s Economic Engine Gets Full Throttle”
Excerpt:
The Senate has approved President Tinubu’s multibillion-dollar borrowing strategy to fund infrastructure, pensions, and national development across sectors.
Quote:
“If the money builds roads, rail, and jobs, it’s not a debt burden—it’s a generational investment.”
— Dr. G. Fraser, MFR, Fraser Consulting Consortium.
Comment:
This move signals the APC’s intention to tie borrowing directly to visible national transformation—not theoretical growth.
“Borrowing with a Blueprint: Nigeria’s $21.5bn Development Push Approved by Senate”
Excerpt:
Senate leaders say the borrowing was already embedded in the 2025 Appropriation Act, with funds earmarked for capital and human development.
Quote:
“A loan without direction is a trap. A loan with a plan is leverage.”
— Ngozi Okonjo-Iweala, DG, World Trade Organization.
Comment:
Nigeria must ensure every dollar borrowed is traceable to a completed bridge, functioning hospital, or revitalized industry.
“Pensions and Projects: Senate Approves ₦757bn Bond to Clear Arrears, Fund Infrastructure”
Excerpt:
The Senate’s move to honor pension obligations restores faith in the Contributory Pension Scheme and sends a message of justice to retirees.
Quote:
“The dignity of a nation is in how it treats those who built it.”
— Ellen Johnson Sirleaf, Former President of Liberia.
Comment:
This is one of the most people-centered provisions in recent economic policy—if implemented transparently.
“Tinubu’s Borrowing Plan Backed by Senate: Debt for Development or Danger?”
Excerpt:
Lawmakers from both parties debated risks and returns, but ultimately approved the full borrowing plan across foreign and domestic markets.
Quote:
“Public debt must serve public good—nothing else justifies its weight.”
— Thabo Mbeki, Former President of South Africa.
Comment:
This approval must now be matched by real outcomes. The days of borrowing for untraceable projects must end.
“Eastern Rail Reboot: $3 Billion Allocation Sparks Cross-Party Support in Senate”
Excerpt:
For the first time, lawmakers from the South East region unanimously backed a federal loan plan—thanks to direct funding for the long-neglected eastern rail corridor.
Quote:
“When every region sees itself in the national budget, unity becomes real.”
— President Bola Ahmed Tinubu, Policy Retreat, 2024.
Comment:
This is a strategic inclusion that could reduce historic political grievances—if the projects materialize.
“Debt, Hope, and Delivery: Senate Approves Tinubu’s Renewed Economic Drive”
Excerpt:
With Senate backing, the Tinubu administration now has all financial tools required to fully execute its 2025 agenda. The real challenge? Delivery.
Quote:
“In every economy, borrowing is not the issue. What matters is the return on borrowed capital.”
— Dr. Akinwumi Adesina, President, African Development Bank
Comment:
This is a turning point: If the funds translate to progress, Tinubu’s administration will define itself. If not, the burden will be historical.
