The Senate of the Federal Republic of Nigeria has granted approval for President Bola Ahmed Tinubu’s proposal to raise ₦1.15 trillion from the domestic debt market to finance the remaining deficit in the 2025 national budget.
According to reports presented during Wednesday’s plenary session, the decision followed the adoption of a detailed report by the Senate Committee on Local and Foreign Debt. The committee disclosed that the 2025 Appropriation Act provides for a total expenditure of ₦59.99 trillion, which is an increase of ₦5.25 trillion over the initial ₦54.74 trillion proposed by the Executive.
Okay News reports that this expansion in expenditure created a budget deficit of ₦14.10 trillion. Out of this, ₦12.95 trillion had already been approved for borrowing, leaving an uncovered gap of approximately ₦1.15 trillion (₦1,147,462,863,321).
President Tinubu had, on November 4, formally written to the National Assembly seeking approval for the additional borrowing. The president explained that the new borrowing was necessary to ensure the complete execution of federal projects and the continuity of government programmes under the 2025 fiscal plan.
The Senate, while granting approval, emphasized the need for strict oversight on how the funds would be utilized. A motion moved by Senator Abdul Ningi was adopted, mandating the Senate Committee on Appropriations to monitor the disbursement and ensure that the borrowed funds are used exclusively for their designated purposes.
Lawmakers noted that the domestic borrowing initiative would help stabilize government financing and reduce the need for external loans amid global economic pressures. The move also aims to bridge funding gaps without compromising Nigeria’s debt sustainability framework.
