National Assembly Approves $2.347bn External Borrowing Plan

The National Assembly has approved the $2.347 billion external borrowing request by President Bola Ahmed Tinubu, marking a major step in the administration’s effort to finance key infrastructure and social development projects under the 2024 fiscal framework. The approval came after the presentation of a detailed report by the Senate Committee on Local and Foreign Debts, which examined the request’s implications for debt sustainability and economic impact.

The approved loan forms part of the 2022–2024 external borrowing (rolling) plan, which was earlier transmitted to the National Assembly by President Tinubu for legislative consideration. According to the report, the facility will be sourced from multiple international lenders, including the World Bank, the African Development Bank (AfDB), and other development partners.

Senate President Godswill Akpabio, who presided over the plenary session, said the approval was necessary to ensure continued funding for projects already captured in the national budget. He noted that the loans would be channelled into critical sectors such as power, agriculture, healthcare, education, and transportation, all of which are central to the government’s Renewed Hope agenda.

“This approval is not just about borrowing; it is about investing in Nigeria’s growth and ensuring that key development projects do not stall due to funding constraints,” Akpabio stated. “The Senate has carefully scrutinised the proposal and confirmed that the facilities are concessional, with favourable terms that will not jeopardise the country’s fiscal stability.”

The Chairman of the Senate Committee on Local and Foreign Debts, Senator Haruna Manu, explained that the approved loan was part of Nigeria’s strategy to access long-term, low-interest funding for development purposes. According to him, the terms of the loans include extended repayment periods and single-digit interest rates, which make them sustainable and beneficial for the country.

He said, “The committee found that the facilities being sought are mostly concessional loans from multilateral institutions. These are not commercial borrowings but development-focused facilities that will be used to fund priority projects.”

The report revealed that projects to be funded include major road construction, renewable energy expansion, agricultural mechanisation, social protection programmes, and digital transformation initiatives. The World Bank’s component of the loan, valued at $1.5 billion, will be directed toward supporting Nigeria’s economic stabilisation and governance reforms, while the African Development Bank will provide an additional $750 million for infrastructure and industrial development.

The National Assembly emphasised that the funds must be utilised strictly for the purposes outlined in the loan request. Lawmakers also directed the Ministry of Finance and the Debt Management Office (DMO) to ensure transparency, accountability, and effective monitoring of the disbursement and implementation processes.

Senator Adams Oshiomhole, during the debate, urged the government to ensure that the borrowed funds translate into tangible improvements in citizens’ lives. “Nigerians must see and feel the impact of every borrowed dollar. Borrowing should not be for recurrent expenditure but for projects that can generate returns and improve productivity,” he said.

Similarly, Senator Ali Ndume, the Chief Whip of the Senate, stressed that the borrowing should be tied to capital projects that have clear economic benefits, particularly in rural communities. He advised the executive arm to strengthen revenue mobilisation through taxation reforms and improved efficiency in public spending.

In the House of Representatives, lawmakers also gave their approval following the adoption of the report by the House Committee on Aids, Loans, and Debt Management. The committee’s chairman, Rep. Ahmed Dayyabu Safana, confirmed that the loan aligns with Nigeria’s medium-term expenditure framework and does not exceed the country’s debt sustainability threshold.

“The external borrowing plan is consistent with the 2024 budget priorities. It is aimed at bridging the infrastructure gap, supporting human capital development, and enhancing economic diversification,” Safana said.

Despite the approval, some lawmakers expressed concerns about Nigeria’s rising debt profile, warning that the country must prioritise domestic revenue generation and prudent fiscal management. According to data from the Debt Management Office (DMO), Nigeria’s total public debt stood at ₦97.34 trillion (approximately $108 billion) as of June 2025, with external debt accounting for about 40% of the total.

Responding to these concerns, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, assured that the administration remains committed to maintaining a sustainable debt level. He noted that the approved loans will be channelled into projects capable of generating economic value and enhancing productivity across multiple sectors.

“Our approach to borrowing is strategic and responsible. Every facility we access must contribute directly to economic growth, job creation, and social welfare. We are focusing on concessional and semi-concessional loans, which have minimal interest and long repayment periods,” Edun said.

He further explained that the government’s medium-term debt strategy seeks to balance external and domestic borrowings to reduce refinancing risks and lower overall debt service costs. “We are also pursuing aggressive revenue reforms to reduce dependence on debt financing in the future,” he added.

Analysts have commended the National Assembly’s cautious approach, describing the approval as a necessary move to sustain development momentum while maintaining fiscal discipline. Economic expert Dr. Ayo Teriba noted that concessional borrowing remains a viable tool for emerging economies if managed prudently.

“Nigeria still has fiscal space for concessional borrowing, especially for infrastructure and productive investments. However, the key is proper utilisation and accountability to ensure that every dollar borrowed yields measurable economic returns,” Teriba said.

With the approval, the Federal Government is expected to begin negotiations with the respective lenders to finalise loan agreements and disbursement schedules. The National Assembly has pledged to maintain oversight to ensure that the projects funded under the borrowing plan are delivered efficiently and within budget.

 

As Nigeria continues its drive toward economic recovery and growth, the $2.347 billion facility is expected to play a vital role in bridging critical funding gaps and accelerating progress on key national priorities.National Assembly Approves $2.347bn External Borrowing Plan

The National Assembly has approved the $2.347 billion external borrowing request by President Bola Ahmed Tinubu, marking a major step in the administration’s effort to finance key infrastructure and social development projects under the 2024 fiscal framework. The approval came after the presentation of a detailed report by the Senate Committee on Local and Foreign Debts, which examined the request’s implications for debt sustainability and economic impact.

The approved loan forms part of the 2022–2024 external borrowing (rolling) plan, which was earlier transmitted to the National Assembly by President Tinubu for legislative consideration. According to the report, the facility will be sourced from multiple international lenders, including the World Bank, the African Development Bank (AfDB), and other development partners.

Senate President Godswill Akpabio, who presided over the plenary session, said the approval was necessary to ensure continued funding for projects already captured in the national budget. He noted that the loans would be channelled into critical sectors such as power, agriculture, healthcare, education, and transportation, all of which are central to the government’s Renewed Hope agenda.

“This approval is not just about borrowing; it is about investing in Nigeria’s growth and ensuring that key development projects do not stall due to funding constraints,” Akpabio stated. “The Senate has carefully scrutinised the proposal and confirmed that the facilities are concessional, with favourable terms that will not jeopardise the country’s fiscal stability.”

The Chairman of the Senate Committee on Local and Foreign Debts, Senator Haruna Manu, explained that the approved loan was part of Nigeria’s strategy to access long-term, low-interest funding for development purposes. According to him, the terms of the loans include extended repayment periods and single-digit interest rates, which make them sustainable and beneficial for the country.

He said, “The committee found that the facilities being sought are mostly concessional loans from multilateral institutions. These are not commercial borrowings but development-focused facilities that will be used to fund priority projects.”

The report revealed that projects to be funded include major road construction, renewable energy expansion, agricultural mechanisation, social protection programmes, and digital transformation initiatives. The World Bank’s component of the loan, valued at $1.5 billion, will be directed toward supporting Nigeria’s economic stabilisation and governance reforms, while the African Development Bank will provide an additional $750 million for infrastructure and industrial development.

The National Assembly emphasised that the funds must be utilised strictly for the purposes outlined in the loan request. Lawmakers also directed the Ministry of Finance and the Debt Management Office (DMO) to ensure transparency, accountability, and effective monitoring of the disbursement and implementation processes.

In the House of Representatives, lawmakers also gave their approval following the adoption of the report by the House Committee on Aids, Loans, and Debt Management. The committee’s chairman, Rep. Ahmed Dayyabu Safana, confirmed that the loan aligns with Nigeria’s medium-term expenditure framework and does not exceed the country’s debt sustainability threshold.

“The external borrowing plan is consistent with the 2024 budget priorities. It is aimed at bridging the infrastructure gap, supporting human capital development, and enhancing economic diversification,” Safana said.

Despite the approval, some lawmakers expressed concerns about Nigeria’s rising debt profile, warning that the country must prioritise domestic revenue generation and prudent fiscal management. According to data from the Debt Management Office (DMO), Nigeria’s total public debt stood at ₦97.34 trillion (approximately $108 billion) as of June 2025, with external debt accounting for about 40% of the total.

Analysts have commended the National Assembly’s cautious approach, describing the approval as a necessary move to sustain development momentum while maintaining fiscal discipline. Economic expert Dr. Ayo Teriba noted that concessional borrowing remains a viable tool for emerging economies if managed prudently.

“Nigeria still has fiscal space for concessional borrowing, especially for infrastructure and productive investments. However, the key is proper utilisation and accountability to ensure that every dollar borrowed yields measurable economic returns,” Teriba said.

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