The Senate, on Wednesday, approved President Bola Tinubu’s request to borrow ₦1.15 trillion from the domestic debt market to finance the deficit in the 2025 budget.

 

The approval followed the adoption of a report by the Senate Committee on Local and Foreign Debts, presented by the committee’s Vice Chairman, Sen. Manu Haruna (APC–Taraba).

 

President Tinubu had, in a letter dated November 4, sought the Senate’s approval for the loan to bridge the funding gap in the 2025 Appropriation Bill.

 

 

Upon receipt of the request, the upper chamber referred it to the debt committee for legislative review and recommendation.

 

Presenting the report, Sen. Haruna noted that the 2025 Appropriation Act pegged total spending at ₦59.99 trillion, an increase of ₦5.25 trillion from the ₦54.74 trillion initially proposed by the executive.

 

He explained that the upward adjustment created a budget deficit of ₦14.10 trillion, with the approved borrowing in the budget standing at ₦12.95 trillion, leaving an unfunded gap of ₦1.147 trillion.

 

“It has, therefore, become necessary to increase the domestic borrowing limit in the 2025 budget by ₦1.147 trillion to close the funding gap,” Haruna said.

 

He urged the Senate to approve the President’s borrowing request to finance the deficit and ensure smooth implementation of the budget.

 

 

During deliberations, Sen. Abdul Ningi (APC–Bauchi) emphasized the need for collaboration between the Appropriation Committee, the Debt Management Office, DMO, and the Budget Office to ensure transparency and accountability in managing the loan.

 

“We call on the Appropriation Committee to give this Senate updates on the borrowing — from oversight to implementation and utilisation — through quarterly reports,” Ningi said.

 

Also speaking, Sen. Adeola Solomon (APC–Ogun) described the report as “a true reflection of what transpired during the budget process,” stressing the importance of timely sourcing of funds to sustain capital projects under the 2025 Appropriation Act.

 

Following the approval, the Senate directed the Federal Ministry of Finance and the DMO to undertake the borrowing strictly within approved fiscal parameters, ensuring that terms and conditions are favourable, transparent, and sustainable.

 

The chamber further mandated the Committee on Local and Foreign Debts to oversee the implementation and utilisation of the borrowed funds and to receive quarterly reports from the Finance Ministry and the DMO on status, utilisation, and repayment plans.

 

Additionally, the Committee on Appropriation was tasked to ensure that the loan is used solely for funding the 2025 budget deficit.

 

Presiding over the session, the Deputy President of the Senate, Sen. Barau Jibrin (APC–Kano), commended the committee for its timely and thorough work.

 

“The report is precise, direct, and very clear. On behalf of the Senate, I commend the committee and thank the chairman, deputy chairman, and members for their diligent work within a short time,” Barau said.