(3 Minutes Read)
Nigeria’s Senate has approved President Bola Tinubu’s proposal to borrow over USD 21 billion from both foreign and domestic sources to finance the 2025 national budget. The funds are earmarked for critical sectors including infrastructure, healthcare, education, security, and housing—despite growing concerns over inflation and the nation’s rising debt burden.
Senator Solomon Adeola, chairman of the Senate Appropriations Committee, confirmed the approval late Tuesday. “With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” he stated.
The borrowing package includes €4 billion, ¥15 billion, a USD 65 million grant, and USD 2 billion to be raised through local debt markets. A major portion of USD 3 billion is allocated for the rehabilitation of the 2,044-kilometre eastern rail corridor. The proposal is expected to pass the House of Representatives on Wednesday, paving the way for full implementation.
Since assuming office in 2023, President Tinubu has launched wide-ranging economic reforms, including scrapping fuel subsidies and liberalizing the naira exchange rate to reduce fiscal pressure and attract investment. However, these moves have triggered high inflation and worsened living conditions for many Nigerians.
This latest borrowing plan marks a strategic pivot—from early reforms focused on fiscal discipline to a more expansionary approach aimed at stimulating economic growth through public spending. The emphasis on long-term infrastructure and social services is intended to offset current economic hardships.
Critics caution that expanding debt without a matching increase in revenue could heighten fiscal vulnerability, especially as debt servicing consumes a growing share of the national budget. Nigeria’s weak tax base and unstable oil revenues continue to strain public finances.
Read Also:
Nevertheless, the Tinubu administration maintains that strategic borrowing can provide a foundation for long-term economic stability, if managed efficiently. The real test will lie in how transparently the funds are utilized and whether the investments deliver tangible improvements in infrastructure, productivity, and living standards.
With legislative backing secured, the focus now shifts to execution, oversight, and timely delivery of promised development projects.
Arabic
Chinese (Simplified)
Danish
English
French
Hindi
Italian
Norwegian
Portuguese
Russian
Spanish
Swedish