National Assembly approves Tinubu’s request to borrow ₦1.15 Trillion for 2025 Budget deficit

The National Assembly has approved President Bola Tinubu’s request to borrow ₦1.15 trillion to bridge the funding gap in the 2025 budget. Both the Senate and House of Representatives granted the approval during their plenary sessions on Wednesday.

President Tinubu had earlier written to the National Assembly on November 4, seeking authorisation for the borrowing. He explained that the shortfall in domestic financing arose due to the expansion of the 2025 budget beyond the initial revenue and borrowing projections.

According to him, the lawmakers increased the 2025 budget from the proposed ₦54.74 trillion to ₦59.9 trillion — a difference of ₦5.25 trillion — leading to a total budget deficit of ₦14 trillion.

In his letter addressed to Senate President Godswill Akpabio and Speaker of the House of Representatives Tajudeen Abbas, Tinubu said it was “necessary to increase the domestic borrowing limit in the 2025 budget by ₦1.147 trillion to close this gap.”

Presenting the report on the borrowing request, Senator Haruna Manu, Deputy Chairman of the Senate Committee on Local and Foreign Debts, said the committee recommended that the Federal Ministry of Finance and the Debt Management Office (DMO) conduct the borrowing within approved fiscal parameters. He stressed that the process must remain “favourable, transparent, and sustainable.”

The panel also advised that the Committee on Local and Foreign Debts should oversee the utilisation of the loan and receive quarterly reports from the Ministry of Finance and DMO on the status, disbursement, and repayment plans to ensure adherence to debt sustainability and fiscal responsibility laws.

Senator Abdul Ningi of Bauchi Central added an amendment mandating the Committee on Appropriation to ensure that the borrowed funds are strictly used for approved purposes.

Backing the motion, Senator Adeola Solomon of Ogun West said the borrowing was necessary to sustain government operations amid shortfalls in the 2025 budget. “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 commended the committee for what he described as a “precise and well-delivered” report, praising their swift work on the matter.

In October, the National Assembly had also approved Tinubu’s request to borrow $2.35 billion to finance part of the 2025 budget deficit.

Lawmakers further authorised the issuance of a $500 million debut sovereign sukuk in the international capital market to fund key infrastructure projects and diversify the country’s financing options.