President Tinubu’s $21 billion foreign borrowing plan has been approved by the Nigerian Senate
President Bola Tinubu’s proposal to borrow over $21 billion from overseas to cover deficits in the 2025 budget has been accepted by the Nigerian Senate, a senior member announced late Tuesday.
In May, Tinubu requested approval of the borrowing from parliament.
“With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” Senate Appropriations Chair Solomon Adeola told reporters.
A $65 million grant, $2 billion in domestic borrowing in US dollars, and loans of 4 billion euros ($4.70 billion) and 15 billion yen ($102.26 million) are also included in the approval.
Housing, healthcare, education, security, and infrastructure are all designated to get the funds. Renovating a 2,044-kilometer (1,270.08-mile) narrow-gauge line in Nigeria’s eastern rail route has been budgeted about $3 billion.
Tinubu has implemented drastic economic measures since assuming office in 2023, such as depreciating the naira and eliminating expensive fuel subsidies, in an effort to spur growth. The policies have instead exacerbated inflation and led to a crisis in the cost of living.
Notwithstanding the low revenue, Tinubu’s move toward fiscal expansion to spur growth is reflected in the borrowing.
On Wednesday, the House of Representatives is anticipated to adopt the measure.
