The Senate on Wednesday approved President Bola Tinubu’s request to borrow N1.15 trillion from the domestic debt market to finance the deficit in the 2025 Appropriation Act.
The approval followed the adoption of the report of the Senate Committee on Local and Foreign Debts, presented by its Vice Chairman, Sen. Manu Haruna (APC–Taraba).
President Tinubu had, in a letter dated November 4, 2025, sought the Senate’s approval to raise the loan to bridge the funding gap in the 2025 budget. The upper chamber subsequently referred the request to its debt committee for legislative scrutiny and recommendations.
Presenting the report, Sen. Haruna noted that the 2025 budget of N59.99 trillion—an increase of N5.25 trillion from the N54.74 trillion originally proposed by the executive—created a deficit of N14.10 trillion.
He explained that while N12.95 trillion had been provided for borrowing in the budget, an unfunded gap of N1.147 trillion remained, necessitating the approval of additional domestic borrowing.
“It has become necessary to increase the domestic borrowing limit by N1.147 trillion to close the deficit gap,” Haruna said.
During deliberations, Sen. Abdul Ningi (APC–Bauchi) emphasised the need for effective oversight and transparency in managing the new loan. He urged the Committees on Appropriation, Budget Office, and Debt Management Office (DMO) to ensure proper utilisation and quarterly reporting of the funds.
“From oversight to implementation and utilisation, this Senate must receive quarterly updates to ensure compliance and accountability,” Ningi said.
Sen. Solomon Adeola (APC–Ogun) commended the committee for its report, describing it as a “true reflection” of the budget process. He stressed the urgency of sourcing the funds promptly to sustain capital project execution under the 2025 budget.
Following deliberations, the Senate approved the borrowing request and mandated the Federal Ministry of Finance and the Debt Management Office to undertake the loan within approved fiscal parameters, ensuring that all terms are favourable, transparent, and sustainable.
The upper chamber also directed the Committee on Local and Foreign Debts to oversee the implementation and utilisation of the borrowing and to receive quarterly reports on its status, repayment plans, and compliance with debt sustainability thresholds.
Similarly, the Appropriation Committee was mandated to verify that the loan is used strictly to fund the approved deficit in the 2025 Appropriation Act.
Presiding over the plenary, Deputy Senate President Barau Jibrin (APC–Kano) commended the committee for its diligence.
“The report is precise, clear, and direct to the point. On behalf of the Senate, I commend the committee for its excellent work done in record time,” Jibrin said.