N’Assembly okays N1.15trn loan to cover 2025 budget gap

The National Assembly has approved President Bola Tinubu’s request to borrow N1.15 trillion to cover part of the 2025 budget deficit, following an expansion of the national spending plan beyond initial revenue and borrowing estimates.

Both the Senate and House of Representatives gave concurrent approval during Wednesday’s plenary sessions.

President Tinubu, in a letter addressed to Senate President Godswill Akpabio and House Speaker Tajudeen Abbas, said the request became necessary after the National Assembly raised the 2025 budget from N54.74 trillion proposed by the executive to N59.9 trillion — an increase of N5.25 trillion — which created a N14 trillion deficit.

“It is therefore necessary to increase the domestic borrowing limit in the 2025 budget by N1.147 trillion to close this gap,” the president wrote.

Presenting the report, Deputy Chairman of the Senate Committee on Local and Foreign Debts, Senator Haruna Manu (Taraba Central), said the Ministry of Finance and the Debt Management Office (DMO) must ensure the borrowing is undertaken strictly within approved fiscal parameters and under transparent, sustainable terms.

The committee also recommended enhanced legislative oversight, proposing that the panel on local and foreign debts monitor implementation and utilisation of the loan proceeds.

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It further called for quarterly reports from the finance ministry and DMO on loan disbursement, utilisation, repayment plans, and compliance with debt sustainability thresholds.

An additional motion by Senator Abdul Ningi (Bauchi Central) mandated the appropriation committee to ensure the borrowed funds are used strictly for approved purposes.

Supporting the move, Senator Adeola Solomon (Ogun West) said the borrowing was critical to sustaining government operations amid revenue shortfalls.

“There is a need for us to come up with a plan on how the money will be sourced. This will be sourced locally, and I call on my colleagues to support this bill in its entirety,” he said.

Deputy Senate President Barau Jibrin commended the committee’s report, describing it as “precise and well-delivered.”

The latest approval follows earlier consent granted in October for Tinubu’s plan to borrow $2.35 billion externally to finance the 2025 budget deficit, along with a $500 million debut sovereign sukuk issuance in the international capital market to fund infrastructure projects and diversify Nigeria’s financing sources.