Senate Approves Tinubu’s N1.15 Trillion Domestic Loan to Plug 2025 Budget Deficit
Nigeria’s Senate has greenlit President Bola Tinubu’s request to secure N1.15 trillion from domestic lenders, a move aimed at filling a critical funding gap in the 2025 national budget.
The approval, granted during Wednesday’s plenary session, came after lawmakers considered and adopted a report from the Senate Committee on Local and Foreign Debt. This decision sets the stage for the government to borrow heavily from local financial markets to meet its expenditure commitments for the coming fiscal year.
Budget Expansion Creates Funding Shortfall
The committee’s analysis revealed a significant budget expansion during the legislative process. The final 2025 Appropriation Act authorizes total spending of N59.99 trillion, a figure that exceeds the executive’s initial proposal of N54.74 trillion by N5.25 trillion.
This upward revision created a substantial budget deficit of N14.10 trillion. While borrowing plans for N12.95 trillion of this shortfall were already in place, a remaining deficit of approximately N1.15 trillion (N1,147,462,863,321) was left unfunded—the very gap this new loan is designed to close.
Oversight Mandate to Ensure Proper Fund Usage
In a related development demonstrating legislative caution, the Senate adopted a motion by Senator Abdul Ningi. This directive tasks the Senate Committee on Appropriations with strengthening its oversight role.
The committee is now mandated to ensure the borrowed funds are implemented correctly throughout the 2025 fiscal year and used strictly for their designated purposes, a move that addresses public concerns over fiscal responsibility.
President Tinubu’s formal request for this domestic borrowing reached the National Assembly on November 4th. In a letter conveying the appeal, the President outlined that the proposed loan was essential to bridge the funding gap and guarantee the full execution of government programs and projects outlined in the 2025 fiscal plan.
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