The Senate has approved President Bola Ahmed Tinubu’s comprehensive borrowing plan for the 2025-2026 fiscal period.
The plan included a combined external loan package of $21.5 billion, £2.2 billion, and £16 billion Japanese million grant.
The borrowing plan was passed on Tuesday, following the presentation of a report by Aliyu Wamakko, Chairman of the Senate Committee on local and foreign debt.
Wammakko said the request, initially submitted to the national assembly on May 27, was delayed due to the parliament’s recess and challenges in securing documentation from the Det Management Office (DMO).
Additionally, the Senate endorsed a N757.98 billion domestic bond issuance to settle outstanding liabilities under the Contributory Person Scheme (CPS), some of which dates back to December 2023.
The Red Chamber said the approval was to bring relief to thousands of retirees affected by payment delays.
The Senate maintained that the foreign borrowing plan and domestic bond issuance were key components of the 2025-2026 Medium -Term Expenditure (MTEF and Fiscal Strategy Paper (FSP), documents and outline Nigeria’s fiscal direction for the coming years .
President Tinubu, in his correspondence to the National Assembly, described the loans as essential for driving growth across vital sectors, including power, transport, health, education, water, and agriculture.
He highlighting the urgency of addressing the county’s massive infrastructure shortfall, especially following the removal of fuel subsidies, which had strained government revenues and increased pressure o citizens.
“In the light of the significant infrastructure deficit in the country and the paucity of financial resources needed to address this gap amid declining domestic demand, it has become essential to pursue prudent economic borrowing to close the financial shortfall”, President Tinubu stated.
-9News Nigeria.
