The National Assembly has approved President Bola Tinubu’s request to borrow N1.15 trillion to address the deficit in the 2025 national budget.
Both the Senate and the House of Representatives granted the approval during plenary sessions on Wednesday.
President Tinubu had, in a letter dated November 4, sought legislative authorisation for the loan, explaining that the increase in the approved 2025 budget created a shortfall in domestic financing. He noted that while the executive initially proposed a budget of N54.74 trillion, the National Assembly raised the total figure to N59.9 trillion—an upward revision of N5.25 trillion—which pushed the overall deficit to N14 trillion.
To close part of this gap, Tinubu requested that lawmakers approve an increase in the domestic borrowing limit by N1.147 trillion.
Presenting the report on behalf of the Senate Committee on Local and Foreign Debts, Deputy Chairman Haruna Manu (Taraba Central) said the panel recommended that the borrowing be managed by the Federal Ministry of Finance and the Debt Management Office (DMO) in line with fiscal responsibility principles.
He emphasised that all loan terms must remain “favourable, transparent, and sustainable.”
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The committee also advised that the National Assembly’s debt committees monitor the implementation and utilisation of the funds, with quarterly reports on the loan’s status, disbursement, and repayment plans.
Senator Abdul Ningi (Bauchi Central) moved an additional motion mandating the Appropriations Committee to ensure that the borrowed funds are used strictly for their approved purposes.
Backing the motion, Senator Adeola Solomon (Ogun West) said the borrowing was necessary to sustain government operations in light of existing funding shortfalls. “We have shortfalls from the 2025 budget, and we need borrowings. This will be sourced locally, and I call on my colleagues to support this bill in its entirety,” he said.
Deputy Senate President Barau Jibrin praised the debt committee for what he described as a “precise and well-delivered report,” commending the members for completing their work promptly.
This approval follows an earlier National Assembly endorsement in October of Tinubu’s request to borrow $2.35 billion to finance part of the 2025 budget deficit, along with authorisation to issue a $500 million debut sovereign sukuk in the international capital market to fund infrastructure projects and diversify Nigeria’s borrowing sources.