President Bola Tinubu has requested the approval of the National Assembly for a fresh N1.15 trillion borrowing from the domestic debt market to help finance the deficit in the 2025 budget.
The President’s request was conveyed in a letter read on the floor of the Senate during plenary on Tuesday.
According to the letter, the proposed borrowing is intended to bridge the funding gap and ensure full implementation of government programs and projects under the 2025 fiscal plan.
The Senate President, Mr Godswill Akpabio, subsequently referred the request to the Senate Committee on Local and Foreign Debt to report back within one week for further legislative action.
Just last Wednesday, the Senate and the House of Representatives approved his request to obtain $2.347 billion in fresh foreign loans, including a $500 million debut Sovereign Sukuk, to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
According to the breakdown, $2.347 billion will be raised from the international capital market to part-finance the 2025 budget deficit, while $500 million will be sourced through the Sukuk bond to fund key infrastructural projects across the country.
The fresh request to the upper legislative chamber comes amid mounting public concern over Nigeria’s rising debt stock, which has climbed to over N152.40 trillion ($99 billion) as of mid-2025, according to figures from the Debt Management Office (DMO).
The federal government alone accounts for over 92 per cent of Nigeria’s public debt at N141.08 trillion, with N64.49 trillion as external debt and N76.59 trillion as local debt. States account for 7.4 per cent at N11.32 trillion as per the debt office.
Critics have lamented that continuous borrowing will lead to fiscal strain as debt servicing gulps 90 per cent of revenue, leaving little room for investments in critical infrastructure, schools, or hospital. Taken together, the Tinubu administration is estimated to have borrowed over N56 trillion during just two years in office.
On the other hand, proponents which include government officials, insist that strategic borrowing remains crucial to sustaining economic growth, bridging infrastructure gaps, and maintaining investor confidence.