The Nigerian Senate has officially approved President Bola Ahmed Tinubu’s request to borrow ₦1.15 trillion from the domestic debt market to cover the remaining shortfall in the 2025 national budget. The decision was reached during plenary on Wednesday following the adoption of the report presented by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamako.
The committee’s vice chairman, Senator Haruna Manu, explained that the 2025 Appropriation Act had increased total government spending to ₦59.99 trillion, up from the initial proposal of ₦54.74 trillion. This expansion created a budget deficit of ₦14.10 trillion, of which ₦12.95 trillion had already been approved for borrowing. The newly approved ₦1.15 trillion loan will close the remaining gap, enabling full execution of the budgeted programs and services.
The Senate also adopted a motion by Senator Abdul Ningi directing the Committee on Appropriations to intensify oversight and ensure that the borrowed funds are utilized strictly for their intended purposes within the 2025 fiscal year.
While the approval marks a significant step toward stabilizing Nigeria’s fiscal operations, it has also reignited public debate over the country’s escalating debt burden, which reached ₦152.39 trillion (approx. $99.68 billion) as of June 2025.
The Tinubu administration maintains that the borrowing is necessary to sustain critical infrastructure, social programs, and economic recovery efforts. However, economists and civil society groups continue to call for greater transparency and fiscal discipline in managing Nigeria’s debt portfolio.