President Bola Ahmed Tinubu has written to the Senate seeking approval for the establishment of a ₦1.15 trillion domestic borrowing programme to close the funding gap in the 2025 national budget.
In a letter read at Tuesday’s plenary by Senate President Godswill Akpabio, the President said the borrowing had become necessary to address the ₦1.147 trillion unfunded deficit that arose from the increase in the budget size beyond approved revenue projections.
Tinubu noted that the request was made in line with Section 44 (1–2) of the Fiscal Responsibility Act and forms part of the administration’s strategy to ensure fiscal stability and effective budget implementation.
“Based on the foregoing, I wish to 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 President’s letter stated.
The request was subsequently referred to the Committee of the Whole for consideration and further legislative action.
In a separate correspondence, the President also sought Senate confirmation of a ministerial nominee, forwarded in compliance with Section 147 (2) of the 1999 Constitution (as amended).
Both requests were formally acknowledged by the Senate President, who pledged expeditious consideration in line with legislative tradition.The latest request comes less than a week after the House of Representatives approved the president’’s request to raise a total of $2.347 billion from the international capital market to part-finance the 2025 budget deficit and refinance maturing Eurobonds.
The approval followed the consideration and adoption of a report by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during plenary.
The plenary session was presided over by Speaker Tajudeen Abbas.
According to the report presented by Nalaraba, the new external borrowing will comprise $1.23 billion to fund the 2025 budget deficit and $1.12 billion to refinance Nigeria’s Eurobond maturing in November 2025.
The Committee’s recommendations, as adopted by the House, authorize the Federal Government to implement the external borrowing component of the 2025 Appropriation Act amounting to N1.84 trillion (about $1.23 billion) at the budget exchange rate of N1,500 to a dollar.
The House also granted approval for the Federal Government to access the funds through Eurobond issuance, loan syndication, bridge finance facilities, or direct borrowing from international financial institutions.
The lawmakers also endorsed the President’s proposal to issue Nigeria’s first-ever Sovereign Sukuk of up to $500 million in the international capital market, with or without a credit guarantee.
President Tinubu had earlier explained in his letter to the National Assembly that the borrowing plan was necessary to bridge the gap between projected revenue and planned expenditure for the 2025 fiscal year, and to ensure the government meets its obligations when existing debts mature.
