The Nigerian Senate has approved a series of major financial requests presented by President Bola Ahmed Tinubu, including a $21.5 billion external borrowing plan and a N757 billion Federal Government bond for the payment of accrued pension rights under the Contributory Pension Scheme (CPS) as at December 2023.
According to Hobnob News, the approvals were granted on Tuesday during plenary following the consideration of the report by the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wamakko (APC, Sokoto North).
The upper legislative chamber also gave its nod to a ¥15 billion Japanese Yen loan, a €65 million Euro grant, and a request for capital raising of up to $2 billion through foreign-currency denominated instruments in the domestic market.
Wamakko, while presenting the committee’s findings, noted that the borrowing plan aligns with the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) already passed by the National Assembly as part of the 2025 Appropriation Act. He added that the funds would support critical infrastructure and economic growth across key sectors.
“The loan requests are part of strategic national development funding to address pressing needs. Most of the items have already been approved under the MTEF and FSP for the 2025 budget,” he stated.
Seconding the motion, Chairman of the Senate Committee on Appropriations, Senator Solomon Adeola (APC, Ogun West), described the approvals as procedural, saying the borrowings were already embedded in the 2025 budget passed by the National Assembly.
“With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” Adeola said.
Backing the move, Chairman of the Senate Committee on Finance, Senator Sani Musa (APC, Niger East), emphasized that Nigeria remained committed to repaying its debts and noted that the loans would be disbursed over a six-year period.
“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 East) also lent his support, affirming that the borrowing plan complied with the Fiscal Responsibility Act (FRA) and the Debt Management Act. He added that the loans came with favorable terms, spanning repayment periods of between 20 to 35 years.
However, Senator Abdul Ningi (PDP, Bauchi Central) raised concerns over the lack of clear repayment plans in the committee’s report. He urged the Senate to ensure transparency in how the borrowed funds would be utilized to benefit constituents.
Despite opposition from a few lawmakers, the motion was overwhelmingly passed, paving the way for the Tinubu-led administration to implement its expansive economic development and infrastructure agenda.
The approved N757 billion bond for payment of pension arrears is expected to provide relief for retirees under the CPS who have long awaited their entitlements.
