President Bola Tinubu on Tuesday submitted Nigeria’s external borrowing plan for 2025-2026 to the Nigerian Senate, seeking approval to borrow $21.5 billion, ¥15 billion (Japanese Yen), and secure a €65 million grant.
The proposal, detailed in a letter titled “Nigeria’s External Borrowing Rolling Plan for 2024 -2026”, which was read today in the Red Chamber of the National Assembly, aims to address Nigeria’s infrastructure deficit, stabilize the economy, and drive socio-economic development following the removal of the fuel subsidy.
Tinubu, in his letter, outlined the necessity of the borrowing plan, stating that “in light of the removal of the fuel subsidy and its impact on the national economy, approval is called for the borrowing plan, which amounts to USD 21,543,647,912, and EUR 2,193,856,324.54, and in Japanese Yen, 15 billion Yen and grant of 65 million, respectively.”
The President maintained that the funds would support critical infrastructure projects, including railways and healthcare, while promoting job creation, skill acquisition, entrepreneurship, poverty reduction, and food security across Nigeria’s 36 states and the Federal Capital Territory.
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To justify the funding request, Tinubu highlighted the financial strain caused by declining domestic revenue and the need to bridge the infrastructure gap through prudent economic borrowing.
He, therefore, solicited the lawmakers’ approval of the borrowing plan to facilitate timely disbursement and effective project implementation, reinforcing the government’s commitment to improving the livelihoods of Nigerians.
Similarly, Tinubu sought the National Assembly’s approval for the issuance of bonds to settle outstanding pension liabilities worth over N757.9 billion, addressing long-standing financial obligations to retirees.
The latest borrowing plan of the government indicated Nigeria’s continued reliance on external borrowings to bridge the perennial budgets’ deficit gaps to finance economic projects and governance at all tiers of government in the country.
Experts believe that approval of the President’s borrowing plan request will bolster funding for critical sectors of the economy and be pivotal in shaping Nigeria’s economic growth in the years ahead.
