President Bola Tinubu has requested that the National Assembly approve a new ₦1.15 trillion loan from the domestic market to help cover part of the deficit in the 2025 national budget.
The request, contained in a letter from the president, was read by Senate President, Godswill Akpabio, during Tuesday’s plenary.
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Tinubu stated that the borrowing was aimed at bridging the fiscal shortfall and ensuring the smooth implementation of key government programmes and projects outlined in the 2025 budget.
“This request is under the provisions of Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order, which requires National Assembly approval for all new borrowings and appropriation of the proceeds,” the letter added.
Following the reading of the letter, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debt for further consideration and directed the committee to submit its report within one week.
The borrowing, economic watchers say, could worsen Nigeria’s loan repayment capacity, with the government spending over 80 per cent of its revenue in debt servicing, as Nigeria’s debt current hits N152.4 trillion, according to the Debt Management Office (DMO)
They are further worried that the borrowing request came barely five days after the Senate approved another of Tinubu’s requests – a $2.847 billion external borrowing plan, including a $500 million debut Sovereign Sukuk -aimed at financing the 2025 budget deficit and refinancing Nigeria’s maturing Eurobonds.
Recall that the earlier approval followed the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Wamakko Magatarkada Aliyu (APC, Sokoto North).
According to the committee, $2.347 billion would be sourced from the international capital market, while the remaining $500 million would be raised through Sukuk bonds to fund key infrastructure projects nationwide.
This also follows a borrowing request in May 2025, when the President sought the Senate’s approval for a $21.5 billion external loan aimed at financing critical projects across various sectors of the economy, particularly infrastructure, health, education, and water supply.
He also sought the Senate’s authorisation for a N758 billion domestic bond to settle outstanding pension liabilities under the Contributory Pension Scheme.
Accordingly, the bond issuance, amounting to N757.9 billion, is intended to address long-standing pension arrears and fulfil the government’s commitment to retired public sector workers.