Tinubu seeks fresh ₦1.15trn loan to plug widening 2025 budget gap

President Bola Tinubu has asked the National Assembly to approve a new ₦1.15 trillion domestic loan to help fund the deficit in the 2025 national budget.

The request was contained in a letter to the Senate, which was read by Senate President Godswill Akpabio during Tuesday’s plenary session.

Tinubu explained that the additional borrowing is necessary to bridge the fiscal shortfall and sustain the implementation of key government programmes and projects outlined in the 2025 budget.

“This request is made pursuant to Section 44 (1) and (2) of the Fiscal Responsibility Act, 2007, and Section 1(7) of the Executive Order, which requires National Assembly approval for all new borrowings and appropriation of the proceeds,” the letter stated.

Following the reading of the correspondence, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debt for further legislative action, directing the committee to report back within one week.

The new borrowing request comes just five days after the Senate approved another of Tinubu’s requests – a $2.847 billion external loan plan, which includes a $500 million debut Sovereign Sukuk, to finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.

According to the earlier report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North), $2.347 billion will be raised from the international capital market, while $500 million will come from Sukuk bonds to fund critical infrastructure nationwide.

This latest move adds to the administration’s borrowing drive, following a May 2025 request for a $21.5 billion external loan to finance projects in infrastructure, health, education, and water supply sectors, alongside a ₦758 billion domestic bond to clear pension arrears under the Contributory Pension Scheme.

Nigeria’s total public debt stock stood at ₦152.40 trillion as of June 30, 2025, up from ₦149.39 trillion in March, representing an increase of ₦3.01 trillion or 2.01 percent, according to data from the Debt Management Office (DMO).

In dollar terms, total debt rose from $97.24 billion to $99.66 billion within the same period, highlighting the Federal Government’s growing reliance on both domestic and external borrowing to finance fiscal shortfalls amid ongoing revenue and foreign exchange reforms.