President Bola Tinubu on Tuesday asked for Senate approval to borrow N1.15 trillion from the domestic debt market to finance part of the national budget deficit in 2025.
The proposal, made in a letter read in plenary by Senate President Godswill Akpabio, is the most recent in a succession of borrowing plans offered by the Tinubu administration to fund government programs in the face of narrowing fiscal headroom.
According to the President, the new borrowing will “bridge the funding gap and ensure the full implementation of government programs and projects” under the 2025 fiscal plan.
Akpabio referred the request to the Senate Committee on Local and Foreign Debt for additional legislative review, instructing it to report back within one week for future action.
The development comes just five days after the Senate accepted another of Tinubu’s requests: a $2.847 billion external borrowing plan, including a $500 million debut Sovereign Sukuk, to fund Nigeria’s 2025 budget shortfall and refinance maturing Eurobonds.
The previous clearance followed the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North).
According to the committee, $2.347 billion would be raised via the international capital market, with the remaining $500 million coming from Sukuk bonds to fund major infrastructure projects across the nation.
The Senate’s approval of the new borrowing plan comes amid rising public anxiety about Nigeria’s burgeoning debt profile, which, according to the Debt Management Office, would exceed N97 trillion by mid-2025.
While critics fear that the tendency would push the economy into unsustainable debt levels, government officials and politicians believe that strategic borrowing is still necessary to support growth, fund infrastructure, and retain investor confidence.
Recall that Tinubu had previously written to the Senate on October 8, 2025, requesting approval for new foreign loans under the 2025 fiscal framework to fund essential national projects and manage the country’s debt.
Senator Wamakko justified the borrowing by citing its necessity for economic stability, project continuance, and Nigeria’s international credit rating.
“The borrowing plan is essential for Nigeria’s economic stability and to ensure that the country meets its 2025 funding needs without derailing ongoing fiscal commitments,” he said.
Senator Sani Musa (APC, Niger East), Chairman of the Senate Committee on Finance, agreed with the request, calling it critical to the proper implementation of the 2025 Appropriation Bill.
“It is very necessary that we give approval to this request so that the 2025 appropriation will be given the necessary funding,” Musa stated.
Senator Adetokunbo Abiru (APC, Lagos East), Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, explained that the borrowing would not add to Nigeria’s debt burden but was part of an already approved fiscal plan.
“This is more of a compliance issue because the 2025 Appropriation Act has already captured it as part of the deficit financing. The second request is a refinancing arrangement to ensure that the country does not default on Eurobond servicing,” Abiru explained.
Senator Adams Oshiomhole (APC, Edo North), Chairman of the Senate Committee on Interior, also spoke in support of the administration’s borrowing strategy, pointing out that well-structured loans directed to productive areas might increase economic activity.
“There’s nothing wrong with borrowing if it is properly structured and used to address critical issues like unemployment and infrastructural decay,” Oshiomhole said.
