Tinubu asks Senate to approve fresh ₦1.15tn domestic loan

President Bola Tinubu has written to the Senate seeking approval to raise ₦1.15tn from the domestic debt market to close the unfunded portion of the 2025 budget.

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

“I write to kindly request for the approval of the National Assembly to establish a ₦1,150,000,000,000 borrowing programme in the domestic debt market to close the unfunded deficit gap created by the increase in the budget size over and above the prior approved revenue and borrowing plans,” the President stated.

The President explained that the National Assembly passed a ₦59.9tn budget — ₦5.25tn higher than the ₦54.65tn/₦49.74tn proposal initially submitted by the Executive (as referenced in the letter), creating a ₦14tn deficit.

According to the letter, the borrowing already captured in the 2025 Appropriation Act stands at ₦12.95tn, leaving an unfunded gap of about ₦1.1tn.

“It is therefore necessary to increase the domestic borrowing limit in the 2025 budget by ₦1.147tn to close this gap,” the President added.

Tinubu anchored the request on the Fiscal Responsibility Act (FRA) 2007, noting that fresh Federal Government borrowings require prior approval of the National Assembly.

“This request is pursuant to Section 44(1)–(2) of the Fiscal Responsibility Act, 2007, which requires the approval of the National Assembly for all new borrowings by the Federal Government of Nigeria,” the letter read.

The President asked for “timely approval”, attaching a specimen authorisation for lawmakers’ consideration.

After reading the correspondence, Senate President Akpabio referred the request to the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wammako (APC, Sokoto North).

The committee was mandated to report back within one week for further legislative action.

If approved, the facility will raise the 2025 domestic borrowing headroom by ₦1.147tn–₦1.15tn, aimed at ensuring full implementation of programmes and projects in the current fiscal year.

Lawmakers are expected to scrutinise the terms, costs, and debt sustainability implications before a final vote.