President Bola Tinubu has formally approached the Nigerian Senate seeking its nod for a comprehensive $21.5 billion external borrowing plan spanning the 2025 to 2026 fiscal period. The proposal also includes a 15 billion Japanese Yen loan and a €51 million grant from international development partners.
Details of the borrowing request were outlined in a letter addressed to Senate President Godswill Akpabio, which was read on the floor of the Red Chamber during Tuesday’s plenary session.
In his correspondence, President Tinubu highlighted that the proposed loan initiative is a critical response to the economic fallout from the elimination of petrol subsidies. He noted that the funding is aimed at addressing the socio-economic challenges facing the nation and is designed to catalyse infrastructural and developmental gains.
“The removal of the initial fuel subsidy has had notable effects on our economy. This borrowing plan has been structured to mitigate those impacts while simultaneously driving key economic reforms,” Tinubu stated.
According to the President, each of the projects proposed under the borrowing framework has undergone rigorous technical and economic evaluation, with emphasis on their long-term contribution to national development.
He further explained that the loan and grant package is geared towards fostering job creation, expanding skills development, promoting entrepreneurship, reducing poverty levels, and ensuring food security nationwide.
“The intent is to improve living standards and economic resilience across the federation,” Tinubu wrote, noting that the projects would be implemented in all 36 states.
Acknowledging the limitations of dwindling domestic revenue, President Tinubu stressed the need to complement internal financing through strategic and well-targeted foreign loans.
“A significant injection of capital is necessary to bridge our infrastructure deficit. The requested loans will support priority sectors such as electricity, rail transportation, and healthcare services,” he added.
Describing the matter as urgent, Tinubu urged the Senate to expedite its consideration and approval of the loan request to enable the government to fulfill its obligations and deliver projects on schedule.
“In view of the pressing nature of these national needs and the overall objective of economic stability, your swift action on this matter is essential,” the letter emphasized.
Following the reading of the letter, Senate President Akpabio directed the request to the Senate Committee on Local and Foreign Debts. The committee has been instructed to carry out necessary legislative reviews and return its findings to plenary within two weeks.
