The Senate has approved President Bola Tinubu’s request to establish a ₦1.15 trillion domestic borrowing programme to close the funding gap in the 2025 Appropriation Act.
The approval follows the adoption of the report by the Senate Committee on Local and Foreign Debts, which highlighted a shortfall created by the increase in the budget size.
Presenting the findings, Deputy Committee chairman Manu Haruna explained that the ₦59.99 trillion budget passed by the National Assembly exceeded the Executive’s initial proposal of ₦54.74 trillion, creating a ₦14.10 trillion deficit.
Since the original borrowing plan approved by the Executive was ₦12.95 trillion, an unfunded gap of ₦1.147 trillion emerged, necessitating additional domestic borrowing.
“It is therefore necessary to increase the domestic borrowing limit in the 2025 budget to close this gap,” Haruna said.
The committee recommended that the Federal Ministry of Finance and Debt Management Office (DMO) undertake the borrowing strictly within approved fiscal parameters, ensuring transparency, sustainability, and favorable terms. The Senate Committee on Local and Foreign Debts will oversee the implementation, receive quarterly reports, monitor compliance with debt sustainability thresholds, and report deviations to the Senate.
Supporting the report, Senator Solomon Adeola (Ogun West), Chairman of the Appropriations Committee, said the borrowing is necessary to fund the 2025 budget and welcomed the domestic sourcing to ensure timely implementation of capital projects.
Senator Abdul Ningi (Bauchi Central) stressed the urgency of the borrowing and called for additional oversight by the Appropriations Committee to ensure the funds are used strictly for the purposes approved by the SenateThe motion was seconded by Senator Ali Ndume, emphasizing accountability and compliance.
Consequently, the Senate adopted an additional recommendation mandating the Appropriations Committee to ensure that the
With the approval, theFederal Government can now raise ₦1.15 trillion in domestic borrowing, bridging the 2025 budget deficit and ensuring the smooth implementation of the nation’s fiscal plans.