President Bola Ahmed Tinubu has asked the National Assembly to approve a fresh ₦1.15 trillion domestic loan to fund Nigeria’s 2025 budget deficit.
The request was contained in a formal letter read on the Senate floor during Tuesday’s plenary session.
Tinubu said the proposed loan would help bridge the funding gap in the 2025 fiscal year and ensure the smooth execution of key government programs and projects.
According to the president, the borrowing is crucial to maintaining fiscal stability and meeting the administration’s development goals amid rising expenditure and declining revenue inflows.
The Senate President, Godswill Akpabio, after reading the letter, referred the request to the Senate Committee on Local and Foreign Debt. The committee is expected to review the details and report back within a week for further legislative action.
This latest loan request comes barely weeks after the Senate approved another ₦4 trillion loan for the government, drawing widespread criticism from economic experts and opposition lawmakers who warned that Nigeria’s growing debt profile could worsen inflation and weaken the naira.
Tinubu’s administration has repeatedly defended its borrowing strategy, insisting that the loans are being channeled into critical infrastructure and social programs designed to stimulate long-term economic growth.
However, analysts caution that domestic borrowing at such levels could crowd out private investment and increase debt servicing obligations, which already consume a large share of Nigeria’s annual revenue.
With this new ₦1.15 trillion request, concerns are mounting over the sustainability of Nigeria’s debt management strategy as the government continues to rely heavily on loans to meet recurrent and capital expenditure targets.
