By Peter Omopo
Abuja, July 21, 2025 — The Senate has approved a comprehensive borrowing plan embedded in the 2025 Appropriation Act, unlocking funding for critical sectors of the economy and solidifying revenue streams to finance the national budget.
Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola, confirmed during plenary that the loan requests had already been factored into the Medium-Term Expenditure Framework (MTEF) and the 2025 budget.
“The borrowing is already embedded in the 2025 Appropriation Act. With this approval, we now have all revenue sources, including loans, in place to fully fund the budget,” Adeola stated.
While the Senate’s approval drew wide support, it also sparked debate over transparency, debt sustainability, and equitable allocation.
Senator Sani Musa clarified that the loan disbursement would be spread over six years, not limited to 2025. “There’s no economy that grows without borrowing. What we are doing is in line with global best practices,” he said in defense of the plan.
Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, reassured lawmakers that the loans are concessional in nature, comply with the Fiscal Responsibility Act, and are dedicated to growth-driving initiatives.
“These are long-term loans with tenors ranging from 20 to 35 years, strictly tied to capital and human development projects,” Abiru noted.
However, Senator Abdul Ningi (Bauchi Central) raised concerns over the lack of transparency and called for more detailed communication with the public. “We need to tell our constituents exactly how much is being borrowed in their name and for what purpose,” he urged.
Key sectors identified for funding include infrastructure, agriculture, security, power, housing, and digital connectivity.
A standout provision in the borrowing plan is the $3 billion earmarked for the revitalisation of the Eastern Rail Corridor, a strategic route running from Port Harcourt to Maiduguri. Senator Victor Umeh (Anambra Central) hailed the project as transformative: “This is the first time I have seen $3 billion allocated to rebuild the eastern rail line. That alone justifies my full support.”
Deputy Senate President Jibrin Barau praised the committee’s inclusive approach, saying, “This shows that the Renewed Hope Agenda is working. No region is left out.”
The Senate leadership emphasized that all borrowed funds must be used exclusively for capital and development projects, in strict compliance with public finance and debt management laws.
