Nigeria’s senate approves $21 Billion foreign loan plan to fund 2025 budget

Nigeria’s Senate has approved President Bola Tinubu’s request to borrow over $21 billion from external sources to support the country’s 2025 budget, a senior lawmaker confirmed late Tuesday.

The borrowing plan, submitted by Tinubu in May, is aimed at bridging budget deficits and funding key infrastructure and development projects. Lawmakers say the loans will come from multilateral and bilateral lenders, including the World Bank and African Development Bank.

Senate President Godswill Akpabio described the move as necessary to meet pressing national needs, but critics warn the rising debt could further strain the economy.

Nigeria, Africa’s largest economy, has struggled with falling oil revenues, a weakening naira, and inflation above 30%. Tinubu’s government says the funds will be used to stimulate growth, boost job creation, and finance transport, education, and health projects.

With this approval, Nigeria’s debt burden is expected to climb, raising concerns among analysts about sustainability and long-term repayment.