The Nigeria’s Senate has approved President Bola Tinubu’s request to borrow ₦1.15 trillion from the domestic debt market to finance the deficit in the 2025 budget.
The approval came on Wednesday after lawmakers adopted the report of the Senate Committee on Local and Foreign Debts, presented by its Vice Chairman, Senator Manu Haruna (APC–Taraba).
President Tinubu had, in a letter dated November 4, asked the National Assembly to authorise the loan to help close the funding gap in the 2025 Appropriation Bill. The Senate subsequently referred the request to the committee for review and recommendations.
Presenting the report, Senator Haruna explained that the 2025 Appropriation Act set total spending at ₦59.99 trillion — up by ₦5.25 trillion from the ₦54.74 trillion earlier proposed by the executive. The increase, he said, created a ₦14.10 trillion deficit, out of which ₦12.95 trillion had already been earmarked for borrowing, leaving an unfunded gap of ₦1.147 trillion.
“To close this gap, it is necessary to increase the domestic borrowing limit by ₦1.147 trillion,” Haruna said, urging senators to approve the request.
During debate, Senator Abdul Ningi (APC–Bauchi) called for greater oversight and coordination among the Appropriations Committee, the Debt Management Office (DMO), and the Budget Office to ensure transparency in the use of the borrowed funds.
“We must receive quarterly reports on the utilisation and implementation of this borrowing to ensure accountability,” he said.
Also speaking, Senator Adeola Solomon (APC–Ogun) praised the committee’s work, describing its report as “accurate and comprehensive.” He urged quick action to secure the funds and sustain implementation of capital projects in the 2025 budget.
After deliberation, the Senate approved the ₦1.15 trillion loan and directed the Ministry of Finance and the DMO to execute the borrowing strictly within approved fiscal parameters. Lawmakers also mandated the Committee on Local and Foreign Debts to oversee the utilisation of the funds and submit quarterly reports on progress and compliance.
Presiding over the session, Deputy Senate President Barau Jibrin (APC–Kano) commended the committee for what he called a “precise and clear” report, thanking members for their swift work.