- Tinubu requests ₦1.15 trillion domestic borrowing to close the 2025 budget gap.
- Borrowing aligns with Fiscal Responsibility Act to stabilize the budget.
- Senate receives request while House already approved external borrowing.
- Borrowing plan includes Eurobond refinancing and new Sovereign Sukuk.
President Bola Ahmed Tinubu has formally requested the approval of the Senate for a ₦1.15 trillion domestic borrowing programme, aimed at closing the current funding gap in the 2025 national budget. His request was contained in a letter read by Senate President Godswill Akpabio during Tuesday’s plenary.
Tinubu explained that the budget size increased beyond projected revenue performance, leaving an unfunded deficit of ₦1.147 trillion. He noted that the borrowing plan complies with Section 44 (1–2) of the Fiscal Responsibility Act and is part of the administration’s approach to ensure fiscal stability and smooth execution of the 2025 budget.
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He stated clearly in the letter: “I hereby request the approval of the Senate for the establishment of a ₦1.15 trillion borrowing programme in the domestic debt market to close the unfunded 2025 budget deficit.”
The Senate referred the request to the Committee of the Whole for further deliberation.
In a separate letter, Tinubu also sought confirmation of a ministerial nominee, in line with Section 147 (2) of the Constitution. Akpabio acknowledged both requests and promised swift consideration.
This request comes just days after the House of Representatives approved the President’s plan to raise $2.347 billion from the international capital market, which includes funding part of the 2025 budget deficit and refinancing Nigeria’s maturing Eurobonds.
The House approval followed the adoption of a report presented by the Committee on Aids, Loans and Debt Management. The report showed that $1.23 billion will go into deficit financing, while $1.12 billion will refinance Eurobonds that mature in November 2025.
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The Federal Government also got approval to issue Nigeria’s first-ever Sovereign Sukuk of up to $500 million in the international capital market, giving it several borrowing options, Eurobond issuance, loan syndication, bridge financing or direct borrowing from global financial institutions.
Tinubu earlier told lawmakers that borrowing remains necessary to bridge the gap between revenue and expenditure in the 2025 fiscal year, and to ensure the government meets repayment obligations when existing debts mature.
