The Nigerian Senate has approved President Bola Tinubu’s request to borrow ₦1.15 trillion from the domestic debt market to fund the shortfall in the 2025 national budget.
The decision followed the adoption of a report presented by the Senate Committee on Local and Foreign Debt during plenary on Wednesday.
According to the committee’s findings, the 2025 Appropriation Act set Nigeria’s total expenditure at ₦59.99 trillion, reflecting a rise of ₦5.25 trillion above the initial ₦54.74 trillion proposal submitted by the Executive.
This adjustment created a ₦14.10 trillion budget deficit, of which ₦12.95 trillion had previously been approved for borrowing. The new ₦1.15 trillion request was therefore meant to cover the remaining unfunded portion.
Committee members emphasized that the additional borrowing was crucial to ensure the full execution of government projects under the 2025 fiscal plan.
During the session, Senator Abdul Ningi moved a motion urging the Senate Committee on Appropriations to intensify oversight efforts. He stressed the need to guarantee that every borrowed fund is used transparently and for its intended purposes.
“Proper monitoring is key,” he said. “We must ensure these funds do not go to waste or end up diverted.”
President Tinubu had first made the borrowing request on November 4, through an official letter to the National Assembly. In the correspondence, he explained that the loan would help bridge Nigeria’s financing gap and sustain economic growth through priority programs and infrastructure projects.
Economic analysts say the loan approval reflects the government’s growing dependence on domestic borrowing amid declining oil revenue and persistent fiscal pressures.
However, they also warn that rising debt levels could strain future budgets unless the loans are tied strictly to productive investments.
The Senate’s resolution now authorizes the federal government to proceed with raising the ₦1.15 trillion domestically, under guidelines set by the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN).
