Tinubu seeks fresh ₦1.15trn domestic loan to fund 2025 budget deficit

President Bola Tinubu has asked the National Assembly to approve a new ₦1.15 trillion loan from the domestic market to cover part of the deficit in the 2025 national budget.

The request, contained in a letter from the President, was read by Senate President Godswill Akpabio during Tuesday’s plenary.

Tinubu explained that the borrowing is aimed at bridging the fiscal shortfall and ensuring the smooth implementation of key government programmes and projects outlined in the 2025 budget.

“This request is under the provisions of Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order, which requires National Assembly approval for all new borrowings and appropriation of the proceeds,” the letter added.

Following the reading of the letter, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debt for further consideration and directed the committee to submit its report within one week.

The development comes barely five days after the Senate approved another of Tinubu’s requests — a $2.847 billion external borrowing plan, including a $500 million debut Sovereign Sukuk, aimed at financing the 2025 budget deficit and refinancing Nigeria’s maturing Eurobonds.

The earlier approval followed the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North).

According to the committee, $2.347 billion would be sourced from the international capital market, while the remaining $500 million would come from Sukuk bonds to fund key infrastructure projects nationwide.

This also follows a borrowing request in May 2025, when the President sought the Senate’s approval for a $21.5 billion external loan aimed at financing critical projects across various sectors of the economy, particularly infrastructure, health, education, and water supply.

He also sought the Senate’s authorisation for a N758 billion domestic bond to settle outstanding pension liabilities under the Contributory Pension Scheme.

The bond issuance, amounting to N757.9 billion, is intended to address long-standing pension arrears and fulfil the government’s commitment to retired public sector workers.

PUNCH Online reports that the country’s total public debt stock has climbed to ₦152.40 trillion as of June 30, 2025.

This is according to new data released by the Debt Management Office in October.

The figure represents an increase of ₦3.01 trillion or 2.01 per cent from ₦149.39 trillion recorded at the end of March 2025.

In dollar terms, the total debt rose from $97.24 billion to $99.66 billion, reflecting a 2.49 per cent increase within three months.

The latest figures underscore the Federal Government’s growing dependence on both domestic and external borrowing to finance fiscal shortfalls, even as ongoing revenue reforms and foreign exchange liberalisation continue to reshape Nigeria’s economic outlook.

DMO data showed that Nigeria’s external debt rose to $46.98 billion (₦71.85 trillion) in June, up from $45.98 billion (₦70.63 trillion) in March.(Punch)