The Senate has approved President Bola Tinubu’s request to borrow N1.15 trillion from the domestic debt market to finance the deficit in the 2025 Appropriation Act.
The approval followed the adoption of the report of the Senate Committee on Local and Foreign Debts, presented during Wednesday’s plenary by its Vice Chairman, Senator Manu Haruna.
Presenting the report, Haruna explained that the 2025 Appropriation Act, passed at N59.99 trillion, represented an increase of N5.25 trillion from the N54.74 trillion initially proposed by the executive. The adjustment, he said, expanded the budget deficit to N14.10 trillion, while the approved borrowing provision of N12.95 trillion left an unfunded gap of N1.147 trillion.
To close the gap, the Senate approved the president’s request to increase the domestic borrowing limit in the 2025 budget by N1.147 trillion.
Following the approval, the upper chamber urged the Federal Ministry of Finance and the Debt Management Office (DMO) to ensure that the borrowing is undertaken strictly within approved fiscal parameters, with all terms and conditions being favourable, transparent, and sustainable.
It also directed the Senate Committee on Local and Foreign Debts to oversee the implementation and utilisation of the loan, mandating the Ministry of Finance and the DMO to submit quarterly reports on the status, utilisation, and repayment plans.
Additionally, the Committee on Appropriation was tasked with ensuring that the borrowing is strictly applied to financing the 2025 budget deficit.
President Tinubu had, on November 4, sought Senate approval for the fresh N1.15 trillion domestic loan as part of his administration’s fiscal strategy to stimulate economic growth, boost infrastructure investment, and strengthen social welfare programmes.
Earlier in July, the Senate approved the president’s 2025–2026 external borrowing plan of $21.5 billion and the issuance of a Federal Government bond of N757 billion to settle accrued pension arrears under the Contributory Pension Scheme as of December 2023.
