The National Assembly has approved President Bola Tinubu’s request to borrow ₦1.15 trillion from the domestic debt market to close the funding gap in the 2025 national budget, completing the administration’s fiscal financing plan for the year.
Both the Senate and House of Representatives gave concurrent approval to the request on Wednesday after considering separate committee reports on the proposed borrowing.
In the Senate, the decision followed the adoption of a report by the Committee on Local and Foreign Debt, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North). The committee explained that the 2025 Appropriation Act provides for total expenditure of ₦59.99 trillion — an increase of ₦5.25 trillion from the ₦54.74 trillion initially proposed by the Executive — resulting in a total deficit of ₦14.10 trillion.
Out of this, ₦12.95 trillion had already been approved for borrowing, leaving an unfunded shortfall of ₦1.15 trillion now covered by the latest approval.
In a letter earlier read on the Senate floor, President Tinubu had said the additional borrowing was necessary “to bridge the funding gap and ensure full implementation of government programmes and projects under the 2025 fiscal plan.”
The Senate also adopted a motion by Senator Abdul Ningi (PDP, Bauchi Central), mandating the Committee on Appropriations to intensify oversight to ensure the borrowed funds are utilized strictly for the purposes outlined in the budget.
Similarly, the House of Representatives granted approval following the consideration of a report by its Committee on Aids, Loans, and Debt Management. Presenting the report, Chairman Abubakar Nalaraba (APC, Nasarawa) urged the House to endorse “a borrowing programme of ₦1.15 trillion in the domestic debt market to close the unfunded deficit gap created by the expanded budget size.”
Tinubu’s letter to the House, read last week by Deputy Speaker Benjamin Kalu, explained that the upward revision of the 2025 budget by ₦5.25 trillion had widened the deficit to ₦14.10 trillion. He noted that the new borrowing was in line with the Fiscal Responsibility Act, 2007.
“It is, therefore, necessary to increase the domestic borrowing limit in the 2025 budget by ₦1.15 trillion to close the gap,” the President wrote.
Lawmakers supporting the measure, including Senators Sani Musa (APC, Niger East) and Adetokunbo Abiru (APC, Lagos East), argued that the borrowing was already accounted for in the 2025 fiscal framework and would not worsen Nigeria’s debt profile.
“This is largely a compliance issue because the borrowing had been captured in the deficit financing plan,” Senator Abiru said. “It ensures the country does not default on existing obligations while sustaining budget execution.”
Senator Adams Oshiomhole (APC, Edo North), Chairman of the Senate Committee on Interior, also defended the government’s approach, saying, “There’s nothing wrong with borrowing if it is structured properly and targeted at tackling unemployment and infrastructure decay.”
The Senate had two weeks earlier approved another presidential request for an external borrowing package worth $2.847 billion, including a debut $500 million Sovereign Sukuk, to fund key infrastructure projects and refinance maturing Eurobonds.
The latest approval, however, comes amid public concern over Nigeria’s rising debt burden, which the Debt Management Office estimated at over ₦97 trillion as of mid-2025.
While critics warn of possible debt unsustainability, the government maintains that strategic borrowing remains essential to bridge funding gaps, drive growth, and preserve investor confidence.
