In a strategic push to address Nigeria’s infrastructure deficit and settle pension liabilities, the Senate on Tuesday approved President Bola Tinubu’s borrowing plan for the 2025–2026 fiscal period.
The comprehensive package includes external loans amounting to $21.5 billion, €2.2 billion, and 15 billion Japanese Yen, along with a €65 million grant.
Additionally, lawmakers endorsed a ₦757.98 billion domestic bond issuance to clear outstanding liabilities under the Contributory Pension Scheme (CPS), some of which have been pending since December 2023.
The Senate stated that the approval aims to bring relief to thousands of retirees affected by delays in CPS payments and is aligned with the objectives of the 2025–2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts, presented the report backing the approvals.
He confirmed that the external loans are mostly concessional, with low interest rates and favorable repayment terms, aimed at funding critical sectors like infrastructure, healthcare, and education without exerting undue pressure on public finances.
The red chamber’s decision marks a pivotal step in financing national development, while managing fiscal sustainability through a blend of strategic borrowing and investment in long-term growth.
