… What Are We Borrowing For, And How Do We Pay, Asks Ningi
By Jeremy Fregene
Despite sharp warnings from Senator Abdul Ningi (PDP–Bauchi) over a lack of transparency and repayment details, the Nigerian Senate yesterday approved a staggering external borrowing plan totalling $21.5 billion, alongside ¥15 billion, €56 million, and a domestic bond of ₦757 billion to clear pension arrears.
The loan request, part of the 2025–2026 borrowing plan submitted by President Bola Tinubu, aims to fund critical infrastructure and development projects across the country. It was presented to the Senate by Senator Aliyu Wamakko (APC–Sokoto), Chairman of the Senate Committee on Local and Foreign Debts, who recommended its approval.
Also included in the approved plan is a proposed $2 billion capital raise through foreign currency-denominated instruments in the domestic market.
While the majority of senators threw their support behind the request—arguing it was consistent with the Medium-Term Expenditure Framework (MTEF) and already embedded in the 2025 Appropriation Act—Senator Ningi sounded the alarm on what he described as opaque fiscal planning.
“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” Ningi said during plenary.
“This document does not show how these loans will be repaid or what each state or agency is getting. People will ask us—and rightfully so.”
Ningi cited constitutional provisions that demand transparency and accountability in public borrowing, warning that lawmakers must not rubber-stamp loan approvals without detailed disclosures.
But his concerns were largely overshadowed by the Senate majority, who argued the loans are essential for Nigeria’s growth and in line with global practices.
Senator Solomon Adeola (APC–Ogun), Chairman of the Senate Committee on Appropriations, defended the move as procedural:
“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.”
Senator Sani Musa (APC–Niger) added that the borrowing plan spans a six-year disbursement timeline, not just the 2025 fiscal year. He also stated that Nigeria remains in good standing with its existing loan repayments.
“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) emphasized that the loans are long-term, concessional, and compliant with both the Fiscal Responsibility Act and Debt Management Office (DMO) guidelines.
“Some of these loans have tenors of up to 35 years with low-interest rates. They’re intended for capital and human development.”
From the opposition bench, Senator Victor Umeh (LP–Anambra) endorsed the borrowing plan, pointing specifically to $3 billion allocated for reconstruction of the eastern rail line, which he described as “historic.”
“This is the first time I’ve seen such investment in the eastern corridor. That alone justifies my support.”
Deputy Senate President Jibrin Barau (APC–Kano), who presided over the session, praised the borrowing plan as inclusive and aligned with the government’s Renewed Hope Agenda.
“No region is left behind in this borrowing plan. With this approval, full implementation of the 2025 budget can now commence,” Barau said.
He stressed that all disbursements must be strictly tied to capital and development projects, in accordance with public finance regulations.