From Victor Osula, Abuja
The Senate has approved President Bola Tinubu’s request to borrow N1.15 trillion from the domestic debt market to finance part of the deficit in the 2025 national budget.
The approval followed the presentation and consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamako (APC, Sokoto North).
Presenting the report during plenary on Wednesday, Vice Chairman of the Committee, Senator Haruna Manu (PDP, Taraba Central), urged lawmakers to endorse the borrowing proposal as part of measures to bridge Nigeria’s fiscal gap and support ongoing development programmes under the 2025 fiscal plan.
“That the Senate do receive and consider the report of the Committee on Local and Foreign Debts for the approval of the borrowing programme to fund the 2025 budget deficit,” Manu said.
The recommendation was subsequently adopted by the upper chamber after a brief debate.
President Tinubu’s letter seeking the Senate’s approval for the N1.15 trillion domestic borrowing was earlier read on November 4 by Senate President Godswill Akpabio during plenary.
The letter highlighted the government’s need to raise additional funds to ensure full implementation of priority programmes and capital projects.
According to the President’s communication, the loan will be raised from the domestic market to complement other sources of budget financing, including external loans, grants, and internally generated revenues.
Tinubu maintained that the borrowing plan was crucial to sustaining the administration’s Renewed Hope Agenda and promoting inclusive economic growth.
In his remarks after the adoption of the report, Akpabio commended the committee for its timely work, stressing the need to ensure that all borrowed funds are judiciously utilized for projects that have direct impact on Nigerians.
He also reminded the executive of the Senate’s earlier call for prudent fiscal management and transparency in debt utilization, cautioning that borrowing must not replace genuine revenue reforms and efficient public spending.
Speaking with journalists after the plenary, Senator Manu explained that the committee had thoroughly examined the borrowing proposal and found it consistent with Nigeria’s debt sustainability ratio.
He said domestic borrowing would not only fund critical projects but also stimulate local financial markets and enhance economic activity.
Some lawmakers, however, urged the government to complement its borrowing drive with aggressive efforts to expand the tax base, reduce waste, and strengthen revenue collection mechanisms.
They stressed that sustainable growth could only be achieved through disciplined fiscal management and improved productivity.
With the approval, the Federal Government is now authorized to raise N1.15 trillion from the domestic debt market to fund the 2025 budget deficit and ensure the continuation of key capital projects and national programmes across sectors.
