The National Assembly has given the green light for President Bola Ahmed Tinubu to secure a new domestic loan worth ₦1.15 trillion. This move is intended to bridge the gap in the 2025 national budget, following a significant increase in the approved spending plan. Both the Senate and House of Representatives voted in favor of the measure during their plenary session on Wednesday.
Why the Budget Needs More Funding
President Tinubu formally requested the additional borrowing in a letter dated November 4. He explained that the legislature’s decision to raise the total budget to ₦59.9 trillion up from the executive’s original proposal of ₦54.74 trillion created a shortfall of ₦14 trillion. To address this, the President asked lawmakers to increase the domestic borrowing limit by ₦1.147 trillion.
Ensuring Responsible Borrowing
Senator Haruna Manu, deputy chair of the Senate Committee on Local and Foreign Debts, outlined the committee’s recommendations. He stressed that the Ministry of Finance and the Debt Management Office (DMO) must adhere to strict fiscal guidelines when managing the new loan. All borrowing terms should be favorable, transparent, and sustainable.
The committee also called for ongoing oversight. It recommended that the Senate mandate regular monitoring of how the funds are used, with quarterly updates from the finance ministry and DMO on the loan’s status, utilization, and repayment schedule. Senator Abdul Ningi proposed a motion to ensure the money is spent only for its intended purposes.
Lawmakers Defend the Decision
Senator Adeola Solomon supported the bill, noting that the borrowing is necessary due to revenue shortfalls. “We have gaps in the 2025 budget, and borrowing is required,” Solomon said. He emphasized that the funds will be sourced locally and urged colleagues to back the legislation.
Addressing Concerns Over Rising Debt
The approval comes as Nigeria’s national debt continues to climb. By mid-2025, the Debt Management Office reported that the country’s total debt had exceeded ₦97 trillion. Critics warn that ongoing borrowing could push the economy toward unsustainable debt levels.
However, government officials and lawmakers argue that strategic borrowing is crucial for maintaining economic growth, funding infrastructure, and sustaining investor confidence.
Earlier in October 2025, the National Assembly had also approved a $2.35 billion loan to help cover the budget deficit. Both chambers authorized the issuance of a $500 million sovereign sukuk in international markets, aiming to diversify financing and support infrastructure projects.
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