ABUJA, July 24 (AGCNewsNet) — Nigeria’s Senate has approved a $21 billion external borrowing plan submitted by President Bola Ahmed Tinubu to finance the country’s 2025 national budget and support key development projects.

The Senate clearance, confirmed late Tuesday, allows the federal government to seek funds from multilateral and bilateral partners including the World Bank and African Development Bank. The loan is intended to address Nigeria’s growing fiscal deficit and stimulate economic recovery through investments in transport, education, healthcare, and infrastructure.

Senate President Godswill Akpabio described the approval as “a necessary step to address pressing national needs,” even as critics expressed concern over the country’s rising debt profile.

Nigeria, Africa’s largest economy, continues to grapple with falling oil revenues, a weakening naira, and inflation that has soared beyond 30%. Despite these economic headwinds, the Tinubu administration maintains that external borrowing is critical to funding long-overdue reforms and catalyzing inclusive growth.

“The loans are targeted at productivity-driven sectors,” a senior lawmaker said. “We expect this to translate into jobs, better infrastructure, and economic expansion.”

However, analysts caution that the additional borrowing will elevate Nigeria’s debt obligations, which already account for a substantial portion of government revenue. They warn of the potential long-term risks to fiscal sustainability if revenue performance fails to improve in line with rising debt service costs.

The loan package is part of the administration’s broader economic recovery plan, which includes subsidy reforms, exchange rate adjustments, and investments in digital and human capital development.

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