President Bola Tinubu on Tuesday sought the approval of the Senate to borrow N1.15tn from the domestic debt market to finance part of the deficit in the 2025 national budget.
The request, contained in a letter read during plenary by Senate President Godswill Akpabio, is the latest in a series of borrowing plans presented by the executive to sustain government programmes amid tightening fiscal space.
According to the President, the fresh borrowing would “bridge the funding gap and ensure the full implementation of government programmes and projects” under the 2025 fiscal plan.
Akpabio referred the request to the Senate Committee on Local and Foreign Debt for further legislative consideration, directing it to report back within one week for subsequent action.
The development comes barely five days after the Senate approved another of Tinubu’s requests — a $2.847bn external borrowing plan, including a $500m 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, $2.347bn would be sourced from the international capital market, while the remaining $500m would come from Sukuk bonds to fund key infrastructure projects nationwide.
The Senate’s endorsement of the new borrowing plan comes amid growing public concern over Nigeria’s ballooning debt profile, which, according to the Debt Management Office, had surpassed N97tn by mid-2025.
While critics warn that the trend could push the economy toward unsustainable debt levels, government officials and lawmakers argue that strategic borrowing remains essential to sustaining growth, financing infrastructure, and maintaining investor confidence.
Recall that Tinubu had earlier, on October 8, 2025, written to the Senate seeking approval for new foreign loans under the 2025 fiscal framework to finance critical national projects and manage the country’s debt obligations.
Presenting the committee’s report at the time, Senator Wamakko justified the borrowing, stressing its importance for economic stability, project continuity, and Nigeria’s international credit reputation.
“The borrowing plan is essential for Nigeria’s economic stability and to ensure that the country meets its 2025 funding needs without derailing ongoing fiscal commitments,” he said.
Chairman of the Senate Committee on Finance, Senator Sani Musa (APC, Niger East), also backed the request, describing it as vital for the effective implementation of the 2025 Appropriation Bill.
“It is very necessary that we give approval to this request so that the 2025 appropriation will be given the necessary funding,” Musa stated.
In his contribution, the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru (APC, Lagos East), clarified that the borrowing would not worsen Nigeria’s debt burden but was part of an already approved fiscal plan.
“This is more of a compliance issue because the 2025 Appropriation Act has already captured it as part of the deficit financing. The second request is a refinancing arrangement to ensure that the country does not default in Eurobond servicing,” Abiru explained.
Also speaking, Chairman of the Senate Committee on Interior, Senator Adams Oshiomhole (APC, Edo North), defended the administration’s borrowing approach, noting that well-structured loans targeted at productive sectors could boost economic activity.
“There’s nothing wrong with borrowing if it is properly structured and used to address critical issues like unemployment and infrastructural decay,” Oshiomhole said.
With the new request, the Tinubu administration continues its effort to consolidate Nigeria’s fiscal position ahead of the 2025 financial year, even as it battles dwindling oil revenue, high inflation, and increasing debt-servicing obligations.
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