Senator Adams Oshiomhole has stated that the Nigerian Senate will thoroughly examine President Bola Tinubu's latest external borrowing proposal before making a decision. The proposal, which includes $20.52 billion and €1.045 billion in facilities, aims to finance projects and programs across various sectors. Oshiomhole emphasized that the Senate will assess the intended projects and the use of previous loans to ensure the proposed financing serves the country's interests.
The proposed loan is part of the Federal Government's 2026-2027 Supplementary External Borrowing Plan. President Tinubu's letter, read during a plenary session on October 27, specified the facilities as $20,517,755,901 and €1,045,083,643. The Senate President, Godswill Akpabio, referred the proposal to the Senate Committee on Local and Foreign Debts, along with the committees on Appropriation and Finance, to review and submit findings within a week.
Oshiomhole, the Edo North senator, stressed that the Senate will not automatically endorse proposals from the executive. Instead, the chamber will exercise its oversight responsibilities to ensure the loan serves the country's interests. He maintained that investment in infrastructure, such as roads, railways, and electricity, can expand economic activity and generate resources for repayment.
The proposed loan aims to address infrastructure needs that available resources cannot cover. President Tinubu identified power, transportation, and healthcare as principal areas for investment, alongside agriculture, education, water supply, security, and other programs. Technical and economic assessments informed the selection of projects, which the administration intends to use to support employment, skills development, and economic growth.
Oshiomhole had previously defended borrowing for infrastructure, arguing that it can expand economic activity and generate resources for repayment. He emphasized that the proposed funds are intended for infrastructure rather than salaries and routine expenditure. However, former Vice-President Atiku Abubakar urged lawmakers to withhold approval until the government publishes the projects, contractors, costs, financing conditions, and repayment obligations associated with the facilities.
The request has sparked concerns about Nigeria's growing debt. According to the Debt Management Office, Nigeria's total public debt stood at N166.79 trillion as of June 2026, comprising approximately N91.59 trillion in domestic debt and N75.20 trillion in external debt. The Senate's decision on the loan request will have significant implications for the country's economic development and debt profile.
The Senate Committee on Local and Foreign Debts, along with the committees on Appropriation and Finance, will play a crucial role in scrutinizing the loan proposal. Their review and recommendations will guide the Senate's decision on the proposal. The committees' report is expected to provide insight into the potential impact of the loan on Nigeria's economy and debt sustainability.
Key points
- The Nigerian Senate will thoroughly examine President Tinubu's $20.52 billion loan request to ensure it serves the country's interests.
- The proposed loan aims to address infrastructure needs in power, transportation, healthcare, and other sectors.
- Nigeria's total public debt stands at N166.79 trillion as of June 2026.
