By John Umeh
The Nigerian Senate has officially approved President Bola Ahmed Tinubu’s request to secure $21 billion in foreign loans to finance critical infrastructure and development projects across the country. The endorsement, which follows weeks of deliberations and committee reviews, marks a significant step in the administration’s broader economic recovery and growth plan.
President Tinubu’s borrowing proposal, submitted to the National Assembly as part of the 2022–2024 external borrowing rolling plan, was defended by top officials from the Ministry of Finance, Budget and National Planning. According to the presidency, the loan package will be sourced from a mix of multilateral and bilateral creditors, including the World Bank, African Development Bank (AfDB), Islamic Development Bank, and other international lenders.
Lawmakers in the Senate said the loan would be instrumental in funding key sectors such as power, transport, education, healthcare, water resources, and agriculture. Senate President Godswill Akpabio emphasized that the borrowed funds are targeted toward projects that can stimulate growth, create jobs, and reduce Nigeria’s infrastructure deficit.
“The projects listed under this borrowing plan have direct impact on the lives of ordinary Nigerians,” Akpabio noted during the plenary. “This approval is not a blank cheque but a mandate to fund specific national priorities that will improve the lives of our citizens.”
Despite the approval, some lawmakers and economic analysts have raised concerns about Nigeria’s rising debt profile, warning that the country must tread cautiously to avoid falling into a debt trap. As of the end of 2024, Nigeria’s total public debt had surpassed ₦97 trillion (approximately $68 billion), according to figures released by the Debt Management Office (DMO).
In response to these concerns, the presidency assured Nigerians that the loans would be responsibly managed, strictly monitored, and channeled toward revenue-generating and job-creating projects. The government also reiterated its commitment to fiscal responsibility and transparency in loan disbursement and utilization.
With the Senate’s approval now in place, the Tinubu administration is expected to begin drawing down the loans in tranches, in line with project readiness and implementation schedules. The funds are anticipated to accelerate infrastructure development and support economic reforms aimed at stabilizing the naira, curbing inflation, and attracting foreign investment.
As the nation grapples with economic headwinds, including rising inflation, unemployment, and a weakening currency, the $21 billion loan plan represents both an opportunity and a challenge—one that will test the administration’s ability to balance development with sustainable debt management.
