(DDM) – Nigeria’s House of Representatives has approved President Bola Ahmed Tinubu’s request to borrow ₦1.15 trillion and secure additional external loans to finance the 2025 national budget.
The approval followed the presentation of the report by the House Committee on Aids, Loans, and Debt Management during Wednesday’s plenary session in Abuja.
The lawmakers, after extensive deliberations, endorsed the borrowing plan as part of the government’s fiscal strategy to bridge budget deficits and fund critical infrastructure projects across various sectors.
According to the report, the fresh loans will be sourced from both domestic and international lenders, including concessional facilities from multilateral financial institutions and bilateral partners.
Speaker of the House, Rt. Hon. Tajudeen Abbas, noted that the approval was in line with the fiscal sustainability framework proposed under President Tinubu’s Renewed Hope Agenda.
He explained that the borrowings are expected to support key government priorities such as power, transportation, education, healthcare, and job creation through capital-intensive projects.
DDM reports that this move comes amid public concern over Nigeria’s rising debt profile, which has exceeded ₦97 trillion according to recent figures from the Debt Management Office (DMO).
Critics have argued that continuous borrowing without matching revenue growth could further strain the economy and future generations.
However, government officials insist that the loans are necessary to sustain economic stability, support infrastructure renewal, and enhance service delivery in line with global best practices.
Finance and Economy Minister Wale Edun had earlier stated that the administration’s medium-term expenditure framework prioritizes borrowing for productive investments rather than consumption.
He emphasized that Nigeria’s debt-to-GDP ratio remains within acceptable international thresholds and that efforts are ongoing to improve tax collection and diversify revenue sources.
Economic analysts told DDM that the approval reflects the government’s reliance on debt financing as a temporary tool to navigate fiscal shortfalls and manage inflationary pressures.
They also warned that while borrowing can stimulate short-term growth, the country must strengthen domestic production and exports to avoid long-term dependence on external credit.
The ₦1.15 trillion loan package forms part of a broader fiscal plan aimed at supporting the 2025 budget, which President Tinubu has described as a “budget of economic resilience and inclusive growth.”
The administration plans to channel significant portions of the funds into the rehabilitation of federal roads, energy transition initiatives, and social investment programs targeting vulnerable citizens.
Lawmakers from both ruling and opposition parties urged strict oversight to ensure transparency, accountability, and value for money in the implementation of projects funded through the new loans.
They also called on the executive to curb wasteful spending, block revenue leakages, and strengthen anti-corruption measures in public finance management.
DDM reports that this latest approval adds to the federal government’s series of loan requests since 2023, reflecting continued dependence on credit financing amid slow revenue inflows and global economic headwinds.
Observers believe the move will shape Nigeria’s fiscal direction in 2025 and determine the pace of infrastructural and economic recovery under the current administration.
