The National Assembly has approved President Bola Ahmed Tinubu’s request to secure a $2.35 billion external loan to fund key infrastructure and development projects across Nigeria. The decision was reached after both chambers of the legislature—the Senate and the House of Representatives—deliberated and gave concurrent approval on Thursday in Abuja.
The loan, which forms part of the 2022–2024 external borrowing plan earlier submitted by the executive arm, is expected to be sourced from the World Bank and other multilateral financial institutions. According to the federal government, the facility will be channelled into critical areas such as power, transportation, agriculture, education, health, and social investment programmes designed to boost economic growth and alleviate poverty.
Presenting the report before the Senate, the Chairman of the Committee on Local and Foreign Debt, Senator Haruna Manu (Taraba Central), explained that the loan request followed due process and conformed with the Debt Management Office (DMO) guidelines. He said the facility was considered necessary to close the country’s infrastructure gap and support ongoing reforms under the Renewed Hope Agenda.
Senator Manu emphasised that the projects to be funded had been carefully selected based on economic viability, job creation potential, and their impact on national productivity. “The funds will be used to complete projects already at advanced stages, ensuring that resources are not wasted on new projects that may not be completed,” he said.
The committee also confirmed that the loan terms are concessional, with low-interest rates and a long repayment window, making it favourable for Nigeria’s fiscal outlook. It stressed that the facility would not lead to a debt crisis, as the country’s debt-to-GDP ratio remains within sustainable limits.
In the House of Representatives, the report was presented by Hon. Mohammed Shehu, who noted that the borrowed funds would be strictly monitored to ensure transparency and accountability. He explained that the approval was given after reviewing relevant documents from the Ministry of Finance, Budget and National Planning, as well as the DMO.
Speaking after the approval, Senate President Godswill Akpabio assured Nigerians that the National Assembly would continue to support the federal government’s efforts to stimulate economic recovery. He urged the executive arm to ensure that the loan is used strictly for the purposes outlined in the plan. “Every dollar borrowed must translate into tangible improvements in the lives of Nigerians,” Akpabio said.
Analysts have, however, called for caution in the use of external borrowing, urging the government to ensure prudent management of public funds and increase domestic revenue generation through tax reforms and diversification of the economy.
President Tinubu’s administration has maintained that external loans remain an important instrument for financing development projects, provided they are used judiciously. The government said it is committed to ensuring fiscal discipline while pursuing its broader objective of economic transformation, infrastructure renewal, and social investment.
With this approval, the federal government is expected to begin negotiations with lending institutions to finalise disbursement and implementation plans for the identified projects across the six geopolitical zones.
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