The Senate has approved President Bola Tinubu’s request to raise ₦1.15 trillion from the domestic market to fund the 2025 budget deficit.
The Senate has approved President Bola Tinubu’s request to raise ₦1.15 trillion from the domestic debt market to finance the unfunded portion of the 2025 budget deficit.
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The approval followed the adoption of the report by the Senate Committee on Local and Foreign Debt during plenary on Wednesday.
According to the committee, the 2025 Appropriation Act provides for a total expenditure of ₦59.99 trillion, an increase of ₦5.25 trillion from the ₦54.74 trillion earlier proposed by the Executive.
This adjustment resulted in a ₦14.10 trillion budget deficit, out of which ₦12.95 trillion had already been approved for borrowing — leaving an unfunded gap of ₦1.15 trillion (₦1,147,462,863,321).
President Tinubu had on November 4 formally requested the fresh borrowing to bridge the shortfall and ensure the effective implementation of government projects under the 2025 fiscal plan.
In adopting the report, the Senate also approved a motion sponsored by Senator Abdul Ningi, mandating the Senate Committee on Appropriations to intensify oversight on the utilization of the borrowed funds.
The motion emphasized that the loans must be used strictly for their intended purposes and aligned with the priorities outlined in the 2025 budget.
The ₦1.15 trillion domestic borrowing forms part of the federal government’s strategy to manage Nigeria’s widening fiscal deficit amid declining oil revenues and rising recurrent expenditure.
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Economists have urged caution, warning that continued reliance on borrowing could increase debt servicing obligations and strain public finances.
