Nigerian Senate Approves Major Borrowing Plan to Fund 2025 Budget

The Nigerian Senate has approved President Bola Tinubu’s proposal to secure over $21 billion in external financing to cover the country’s 2025 budget deficit. The request was first submitted to Parliament back in May.

According to Senate Appropriations Committee Chairman Solomon Adeola, this move will fully finance the national budget and support the implementation of strategic programs.

The borrowing package includes:
✅ $4.7 billion (€4 billion equivalent),
✅ $102.26 million (¥15 billion equivalent),
✅ $65 million in grants,
✅ $2 billion from domestic sources.

The funds will be allocated to infrastructure, healthcare, education, security, and housing. Notably, $3 billion will be used to rehabilitate 2,044 km of railway in the eastern region.

The primary lenders are the European Union and major international financial institutions. Their motivation is clear: strategic access to Nigeria’s vast oil and gas reserves.

External financing helps Nigeria buy time, easing fiscal pressure and delaying difficult structural reforms. However, amid growing internal challenges and escalating insecurity in the north, these loans mostly serve to keep the country afloat rather than solve its systemic issues.

Western actors, through financial support, appear more focused on preventing Nigeria’s collapse than on fostering long-term development.