Nigerian Senate Approves $21 Billion Foreign Borrowing Plan to Bridge 2025 Budget Gap

Nigeria’s Senate has formally approved President Bola Tinubu’s proposal to secure over $21 billion in foreign loans to address funding shortfalls in the country’s 2025 budget. The approval, which was granted on Tuesday, marks a significant step in the administration’s efforts to finance key development priorities amid ongoing economic challenges.

“With this approval, we now have all revenue sources—including domestic and foreign borrowing—in place to fully fund the 2025 budget,” said Senator Solomon Adeola, Chair of the Senate Committee on Appropriations, during a media briefing.

The borrowing package includes:

• €4 billion (approximately $4.7 billion)

• ¥15 billion (around $102.26 million)

• $2 billion in domestic, dollar-denominated borrowing

• A $65 million grant

The funds are earmarked for critical sectors including infrastructure development, healthcare, education, national security, and housing. A notable allocation of $3 billion has been set aside for the revitalization of Nigeria’s 2,044-kilometre eastern rail corridor, a key narrow-gauge line vital for regional connectivity and trade.

President Tinubu first submitted the loan request to parliament in May as part of a broader fiscal strategy to close the nation’s budget deficit.

Since assuming office in 2023, President Tinubu has launched a series of ambitious economic reforms aimed at repositioning Nigeria’s economy for long-term growth. Key among these measures were the removal of fuel subsidies and a managed devaluation of the naira. While intended to boost macroeconomic stability and attract investment, these steps have also contributed to rising inflation and a mounting cost-of-living crisis, sparking concerns among citizens and economic analysts alike.

With Senate approval now secured, the Tinubu administration is expected to move forward with its budget implementation plans, positioning the borrowed funds as critical enablers of Nigeria’s development agenda.