Senate has approved President Bola Tinubu’s request to borrow over $21 billion from external sources to fund the 2025 national budget.
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The loan, submitted for approval in May, is intended to cover budget deficits and finance key infrastructure and development projects across sectors such as transportation, education, and healthcare.
According to lawmakers, the funds would be sourced from multilateral and bilateral lenders, including the World Bank and the African Development Bank.
Senate President Godswill Akpabio defended the decision, describing the loan as essential to addressing the country’s urgent development needs.
However, the approval has drawn criticism from economists and opposition figures who warn that Nigeria’s rising debt levels may pose long-term economic risks.
Nigeria continues to grapple with shrinking oil revenues, a depreciating naira, and inflation exceeding 30%.
The federal government argues that the borrowing will help stimulate economic growth and create jobs, but analysts are raising red flags about the sustainability of the country’s growing debt burden.
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