Senate approves Tinubu’s $21.8bn external borrowing plan for 2025-2026

…Another N757.9bn for pension liabilities

… $2bn for currency denomination

The Senate on Tuesday approved the Federal Government’s 2025-2026 External Borrowing (Rolling) Plan comprising USD21.8bn; €2.1bn; JPY15bn; and a grant of €65m respectively to fund various projects and programmes of the administration of President Bola Tinubu.

The Senate also approved the President’s request to issue FG’s Bond in the domestic debt market to settle outstanding pension liabilities in the sum of N757.98bn.

Similarly, the Senate approved the request for the capital raising of up to $2bn in the domestic debt market towards the implementation of the Presidential Executive Order on Foreign Currency Denominated Instrument Local Issuance Programme by the Debt Management Office (DMO).

The requests were considered and passed following the recommendation by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko.

However, some senators, including Abdul Ningi, raised concerns over the repayment conditions of the loans.

“Generations and generations after us will continue to pay these loans.

“I have looked at the document and I can’t find anywhere that it is mentioned how we are to source to pay for the loans,” Ningi stated.

Senator Adetokumbo Abiru and the Chairman Senate Committee on Finance, Senator Sani Musa, defended the loan, arguing that the conditions were both friendly and flexible.

Tinubu had submitted the external borrowing plan to the Senate on May 27.

The presidential requests target to finance critical projects cutting across various sectors of the economy, particularly infrastructure, health, education, and water supply, among others.

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