President Tinubu government seeks fresh N1.15 trillion loan to fund budget deficit

President Bola Ahmed Tinubu has formally requested the Senate’s approval to secure a new N1.15 trillion loan from the domestic debt market to bridge an existing funding gap in the 2025 national budget.
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The request, read by Senate President Godswill Akpabio during the plenary session on Tuesday, November 4, is aimed at ensuring the smooth implementation and completion of critical government projects.
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The National Assembly this year, increased the 2025 budget to N59.9 trillion from the Executive’s initial N49.74 trillion proposal. This increase created an unfunded deficit gap of approximately N1.15 trillion, which the President is now seeking to close through domestic market borrowing, as mandated by the Fiscal Responsibility Act of 2007.
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This development follows the recent approval of a separate $2.847 billion external borrowing plan by the Senate, days ago. Economic analysts, as a result of this, have expressed concern that the continuous reliance on borrowing, particularly domestic borrowing, could heighten the debt service burden of the country, which already consumes over 80% of government revenue. There are also reports that part of this domestic loan will be used to settle outstanding debts owed to local contractors.
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The Senate Committee on Local and Foreign Debt has been directed to examine the proposal and submit its report within one week.