The Senate has approved President Bola Tinubu’s request to raise ₦1.15 trillion from the domestic debt market to finance a shortfall in the 2025 national budget.
The approval followed the adoption of the report presented on Wednesday by the Senate Committee on Local and Foreign Debt during plenary.
Presenting the report, the committee chairman explained that the 2025 Appropriation Act provides for a total expenditure of ₦59.99 trillion an upward review of ₦5.25 trillion from the initial ₦54.74 trillion earlier submitted by the Executive.
According to the committee, the increase in overall spending created a fiscal deficit of ₦14.10 trillion. Of this amount, ₦12.95 trillion had already been approved for borrowing, leaving an outstanding funding gap of ₦1.15 trillion, which the newly approved domestic loan is expected to cover.
Lawmakers noted that the decision to source the additional funds locally would reduce exposure to exchange rate risks and help sustain debt servicing capacity. They also emphasized the need for prudent management of borrowed funds to ensure the loans are channeled toward productive projects capable of stimulating economic growth and job creation.
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While commending the Executive for efforts to maintain fiscal stability, the Senate urged the Ministry of Finance to intensify revenue generation measures and expand the tax base to minimize future dependence on borrowing.
The approval brings Nigeria’s total borrowing plan for 2025 to nearly ₦14 trillion, reflecting the government’s drive to balance ambitious spending with economic recovery goals.
