Senate approves President Tinubu’s N1.15 trillion domestic loan request

The Senate, on Wednesday, November 12, approved President Bola Tinubu’s request to borrow N1.15 trillion from the domestic debt market. The loan is intended to finance the unfunded deficit gap created during the final passage of the 2025 Appropriation Act.
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The approval followed the adoption of the report from the Senate Committee on Local and Foreign Debts, which deemed the borrowing necessary to ensure the full implementation of government programs and projects outlined in the revised budget.
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The budget initially proposed by the Executive was N54.74 trillion. The National Assembly passed a final budget of N59.99 trillion, representing an increase of N5.25 trillion. This increase resulted in a total budget deficit of N14.10 trillion. Since N12.95 trillion had already been approved for borrowing, an unfunded deficit of N1.147 trillion remained, necessitating the President’s request for additional domestic borrowing to close the gap.
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President Tinubu had initially sent a letter to the Senate on November 4, seeking approval for the domestic loan. The need for the additional borrowing arose because the National Assembly expanded the size of the 2025 budget.
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The Senate’s committee recommended approval to ensure continuous funding of the budget, particularly the implementation of capital components. Concerns about Nigeria’s growing debt profile were addressed by mandating the Federal Ministry of Finance and the Debt Management Office (DMO) to ensure the borrowing is executed strictly within approved fiscal parameters that are favorable, transparent, and sustainable.
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Senator Manu Haruna, Vice Chairman of the Committee, presented the case for the loan, stating it was necessary to increase the domestic limit in the 2025 budget by N1.147 trillion to close the gap.
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