President Bola Ahmed Tinubu has formally approached the National Assembly, seeking approval to borrow ₦1.15 trillion from the domestic debt market to cover the shortfall in the 2025 federal budget. The request was conveyed in a letter addressed to the Senate President, Godswill Akpabio, and read during plenary on Tuesday.
According to the letter, the federal government’s 2025 budget faces an unfunded deficit of approximately ₦1.147 trillion, which emerged following an increase in expenditure items beyond the originally approved revenue projections. President Tinubu explained that the borrowing is a crucial measure to bridge the funding gap and ensure the effective implementation of government programmes and projects outlined in the 2025 fiscal plan.
“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 stated. The President emphasized that the borrowing is part of the administration’s strategy to maintain fiscal stability and smooth budget execution.
Senate President Akpabio referred the borrowing request to the Senate Committee on Local and Foreign Debt for further legislative scrutiny, with instructions for the committee to submit its report within one week.This domestic borrowing proposal comes shortly after the Senate approved an external borrowing plan amounting to $2.847 billion, including a $500 million debut Sovereign Sukuk, intended to finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
In addition, earlier in May 2025, President Tinubu had also sought approval for a $21.5 billion external loan targeted at financing critical infrastructure, health, education, and water supply projects, alongside a N758 billion domestic bond to settle outstanding pension liabilities.
The country’s public debt stock has steadily increased, reaching ₦152.40 trillion as of June 30, 2025, highlighting Nigeria’s growing dependence on borrowing to manage fiscal deficits amid ongoing revenue reforms and economic adjustments.
President Tinubu’s latest move to secure a ₦1.15 trillion domestic loan underscores the government’s commitment to closing the budget gap and sustaining key development initiatives in the 2025 fiscal year while adhering to legislative processes and fiscal responsibility frameworks. The Senate Committee on Local and Foreign Debt will now deliberate the borrowing request and provide recommendations for plenary consideration.
