N’Assembly Approves Tinubu’s N1.15trn Borrowing Request to Plug 2025 Budget Gap

The National Assembly has approved President Bola Tinubu’s request to borrow N1.15 trillion to bridge the shortfall in the 2025 budget. The approval was given by both the Senate and the House of Representatives during plenary on Wednesday.

President Tinubu had on November 4 requested the approval, noting that the 2025 budget, which was passed at N59.9 trillion, had risen by N5.25 trillion above the initial proposal of N54.74 trillion. He attributed the increase to expanded budgetary provisions, which created a deficit of N14 trillion.

“It is necessary to increase the domestic borrowing limit in the 2025 budget by N1.147 trillion to close this gap,” Tinubu said in a letter addressed to Senate President Godswill Akpabio and House Speaker Tajudeen Abbas.

Senator Haruna Manu, representing Taraba Central and deputy chair of the committee on Local and Foreign Debts, presented a report recommending that the Ministry of Finance and the Debt Management Office (DMO) undertake the borrowing within approved fiscal parameters to ensure transparency, sustainability, and favourable terms.

The committee also called for quarterly reports on the utilisation and repayment of the funds, as well as monitoring compliance with debt sustainability and fiscal responsibility thresholds.

Senator Abdul Ningi of Bauchi Central moved an additional resolution mandating the Committee on Appropriations to ensure that the borrowed funds are strictly used for approved purposes.

Senator Adeola Solomon (Ogun West) emphasised the need for the borrowing to sustain government operations amid revenue shortfalls, noting that the funds would be sourced locally.

Deputy Senate President Barau Jibrin commended the committee for its prompt and precise report, describing it as “well-delivered and straight to the point.”

This follows an earlier approval in October, when the National Assembly granted Tinubu’s request to borrow $2.35 billion and issue a $500 million debut sovereign sukuk in the international capital market to fund infrastructure and diversify financing sources.