The Nigerian Senate has granted approval to President Bola Tinubu to borrow the sum of 1.15 trillion Naira from the domestic debt market to fund the deficit in the 2025 National budget.
The approval follows the consideration and adoption of a report by the Senate Committee on Local and Foreign Debt, which reviewed the President’s borrowing request and the fiscal implications of the 2025 Appropriation Act.
According to the committee, the 2025 Appropriation Act passed by the National Assembly stands at N59.99 trillion, representing an increase of N5.25 trillion above the N54.74 trillion earlier proposed by the Executive.
The adjustment created a budget deficit of N14.10 trillion, while only N12.95 trillion had been approved for borrowing in the budget leaving an unfunded gap of N1.15 trillion.
To bridge the gap, the committee recommended that the Federal Government raises the funds through the domestic debt market, noting that such borrowing should be undertaken strictly within approved fiscal parameters.
It further stressed the need for the Federal Ministry of Finance and the Debt Management Office (DMO) to ensure that all borrowing terms are favourable, transparent, and sustainable.
The Senate also directed the Committee on Local and Foreign Debt to oversee the implementation and utilization of proceeds from the approved borrowing.
The senate also resolves to mandate the Ministry of Finance and the DMO to submit quarterly reports on the status, utilization, and repayment plans of the borrowed funds, while ensuring compliance with debt sustainability thresholds and fiscal responsibility provisions.
President Tinubu had, in a letter dated October 31, 2025, sought the National Assembly’s approval to borrow N1.15 trillion under the 2025 domestic borrowing programme to fund part of the budget deficit.
In the communication, the President explained that the request was in line with the provisions of the Debt Management Office (Establishment) Act, 2003, and Section 44 (1–2) of the Fiscal Responsibility Act, 2007, which mandate the President to seek legislative approval for borrowing by the Federation and the States.
During debate on the report, lawmakers expressed support for the borrowing, emphasizing that the funds must be judiciously utilized for capital projects and that the Committee on Appropriation should ensure strict oversight of the implementation process.
(Editor: Anoyoyo Ogiagboviogie)
