Senate President, Godswill Akpabio
Senate has approved President Bola Tinubu’s request to borrow ₦1.15 trillion from the domestic debt market to fund part of the deficit in the 2025 budget.
The decision was reached during Wednesday’s plenary after lawmakers adopted the report of the Senate Committee on Local and Foreign Debts, presented by the committee’s Vice Chairman, Senator Manu Haruna (APC–Taraba).
President Tinubu had, in a letter dated November 4, sought the Senate’s approval to raise the loan to close the funding gap in the 2025 Appropriation Bill.
The request was immediately referred to the debt committee for legislative scrutiny and recommendations.
Presenting the report, Senator Haruna explained that the 2025 Appropriation Act pegged the national budget at ₦59.99 trillion — an increase of ₦5.25 trillion from the ₦54.74 trillion initially proposed by the executive. The upward revision, he noted, created a deficit of ₦14.10 trillion, while the earlier approved borrowing plan covered only ₦12.95 trillion, leaving an unfunded gap of ₦1.147 trillion.
According to Haruna, the additional borrowing was “necessary to increase the domestic borrowing limit in the 2025 budget by ₦1.147 trillion to close the gap.”
He urged the Senate to endorse the President’s request “to ensure the effective implementation of the 2025 budget and sustain ongoing government projects.”
During deliberations, Senator Abdul Ningi (APC–Bauchi) supported the move but called for stronger oversight mechanisms. “We call on the Appropriation Committee to give this Senate an analysis and development on the borrowing,” Ningi said. “From oversight, implementation, and utilisation of proceeds, there must be quarterly reports and strict monitoring of compliance.”
Senator Adeola Solomon (APC–Ogun) commended the debt committee for what he described as “a beautiful report,” adding that he was “100 per cent in agreement with its findings.” He stressed the importance of timely sourcing of funds to ensure continuous financing of the 2025 budget, particularly its capital projects.
Following the approval, the Senate directed the Federal Ministry of Finance and the Debt Management Office (DMO) to conduct the borrowing within the nation’s fiscal guidelines, ensuring all terms are “favourable, transparent, and sustainable.”
The Committee on Local and Foreign Debts was also tasked with monitoring the loan’s implementation and utilisation, as well as receiving quarterly updates from the Finance Ministry and the DMO on disbursement and repayment plans.
In addition, the Senate’s Appropriation Committee was mandated to ensure the borrowed funds are used strictly for the purpose of financing the 2025 budget deficit.
Deputy Senate President Barau Jibrin (APC–Kano), who presided over the session, lauded the committee for its swift and detailed work. “The report is precise, direct to the point, and very clear,” Jibrin said. “On behalf of the Senate, I commend the committee for their diligence and commitment.”
(NAN)
