The Senate on Wednesday approved President Bola Tinubu’s request to raise ₦1.15 trillion from the domestic debt market to bridge the funding gap in the 2025 budget.
The approval followed the presentation and consideration of the report of the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko (APC, Sokoto North).
Wamakko was represented at plenary by the committee’s Vice Chairman, Senator Haruna Manu (PDP, Taraba Central).
In its report, the committee recommended the Senate’s approval of the additional borrowing to cover the ₦14.10 trillion deficit in the 2025 Appropriation Act, which increased following a review of the budget size.
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According to the report, the 2025 budget provides for total spending of ₦59.99 trillion — an increase of ₦5.25 trillion from the ₦54.74 trillion earlier proposed by the executive arm. Out of the total ₦14.10 trillion deficit, ₦12.95 trillion had already been approved for borrowing, leaving an unfunded balance of about ₦1.15 trillion.
President Tinubu’s letter seeking approval for the additional borrowing was earlier read on the floor of the Senate on November 4.
In the letter, the President wrote: “I write to kindly request the approval of the National Assembly to establish a ₦1,150,000,000,000 borrowing program in the domestic debt market to close the unfunded deficit gap created by the increase in the budget size over and above the prior approved revenue and borrowing plans.
“This request is pursuant to the provisions of Section 44, Subsection 1 and 2 of the Fiscal Responsibility Act (FRA) 2007, which requires the approval of the National Assembly for all new borrowings by the Federal Government of Nigeria.”
Tinubu explained that the National Assembly had passed a ₦54.9 trillion budget, which represented an increase of ₦5.25 trillion from the ₦49.74 trillion proposal initially submitted by the executive, thereby expanding the budget deficit to ₦14 trillion.
“However, the proposed borrowing approved in the budget was ₦12.95 trillion, which occasioned an unfunded deficit of ₦1.1 trillion,” the letter read.
“It is therefore necessary to increase the domestic borrowing limit in the 2025 budget by ₦1.147 trillion to close this gap.
“Based on the foregoing, I wish to request the approval of the Senate for the establishment of a ₦1,150,000,000,000 borrowing program in the domestic debt market to close the unfunded 2025 budget deficit gap.
“A specimen of the approval required for this purpose is attached as an extra tool.”
After reading the letter, Senate President Godswill Akpabio referred it to the Senator Wamakko-led Committee on Local and Foreign Debts for further scrutiny and report within one week, a process that culminated in Wednesday’s approval.
