… Funds To Support 2025-2026 Infrastructure And Deficit Financing

The Nigerian Senate approved a $21 billion foreign borrowing plan for President Bola Tinubu’s administration to finance infrastructure projects and the 2025-2026 budget deficit. The approval, granted during a plenary session in Abuja, followed a detailed presentation by the Senate Committee on Finance. The loan package includes contributions from the World Bank, African Development Bank, and European Investment Bank, targeting road construction, power upgrades, and healthcare facilities. Senate President Godswill Akpabio emphasized that the funds would accelerate development in Lagos, Kano, and Enugu, addressing Nigeria’s infrastructure gap. The Senate directed the Ministry of Finance to ensure transparent utilization, with quarterly reports mandated for oversight. Minority Leader Abba Moro, representing the PDP, urged the government to prioritize projects that benefit rural communities. The approval faced opposition from some senators, who cited Nigeria’s rising debt profile, currently at N134 trillion. The government defended the borrowing, stating that it aligns with economic recovery plans to boost GDP growth, recently reported at 3.13% after rebasing. State governments were directed to align their budgets with federal projects funded by the loan. The Senate also approved measures to monitor loan disbursements, with a committee tasked to prevent mismanagement. The decision has sparked calls for accountability, with stakeholders demanding that funds address urgent needs like electricity and transportation. The loan’s approval is a critical step for Tinubu’s administration, aiming to deliver on campaign promises ahead of the 2027 elections.