ABUJA, Nigeria — President Bola Tinubu has formally requested Senate approval for a N1.15 trillion loan from Nigeria’s domestic debt market to help finance the deficit in the 2025 national budget.
The request was contained in a letter read during Tuesday’s plenary session by Senate President Godswill Akpabio. Tinubu stated that the borrowing is necessary to close funding gaps and ensure full execution of key government programs and infrastructure projects outlined in the fiscal plan.
The proposed loan will be sourced locally, a strategy the administration says offers more favorable terms and supports the development of Nigeria’s financial markets. The funds are expected to support sectors including transportation, energy, education, and healthcare.
Akpabio referred the proposal to the , chaired by Senator Aliyu Wammako of Sokoto North. The committee has been directed to review the request and submit its recommendations within one week.
This marks another round of borrowing by the Tinubu administration, which has previously sought legislative approval for similar measures to address budget shortfalls. Nigeria’s public debt stood at over N87 trillion as of mid-2025, according to the Debt Management Office.
Government officials argue that strategic borrowing is essential to sustain development and economic recovery, especially amid global financial pressures. Critics, however, have raised concerns about long-term debt sustainability and the impact on inflation and currency stability.
Lawmakers are expected to scrutinize the loan request closely, with calls for transparency and detailed breakdowns of how the funds will be allocated. Some senators have emphasized the need for fiscal discipline and improved revenue generation.
The 2025 budget includes significant capital expenditure aimed at boosting infrastructure and social services. Tinubu’s economic team has maintained that domestic borrowing is preferable to foreign loans, which often carry higher interest rates and currency risks.
Public reaction has been mixed, with some Nigerians expressing concern over the country’s rising debt profile, while others view the move as necessary to maintain essential services and stimulate growth.
The Senate’s decision on the loan request will be a key indicator of legislative support for Tinubu’s fiscal strategy and could shape Nigeria’s economic trajectory in the coming year.
