President Bola Tinubu has requested the National Assembly’s approval for a new ₦1.15 trillion loan from the domestic market to help cover part of the deficit in the 2025 national budget.
The request, contained in a letter from the President, was read on Tuesday by Senate President Godswill Akpabio during plenary.
Tinubu explained that the proposed borrowing is intended to bridge the fiscal shortfall and ensure the smooth implementation of key government programmes and projects outlined in the 2025 budget.
“This request is made under the provisions of Section 44 (1) and (2) of the Fiscal Responsibility Act, 2007, and Section 1(7) of the Executive Order, which require National Assembly approval for all new borrowings and the appropriation of proceeds,” the letter stated.
Following the reading of the letter, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debt for further consideration and directed the committee to submit its report within one week.
The development comes just five days after the Senate approved another of Tinubu’s borrowing requests — a $2.847 billion external loan package, including a $500 million debut Sovereign Sukuk, aimed at financing the 2025 budget deficit and refinancing Nigeria’s maturing Eurobonds.
That approval followed the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North). According to the committee, $2.347 billion will be raised from the international capital market, while $500 million will come from Sukuk bonds to fund critical infrastructure projects nationwide.
In May 2025, the President had also sought the Senate’s approval for a $21.5 billion external loan to finance priority projects across key sectors, including infrastructure, health, education, and water supply.
Tinubu further requested authorisation for a ₦758 billion domestic bond issuance to settle outstanding pension liabilities under the Contributory Pension Scheme. The bond, valued at ₦757.9 billion, is expected to clear long-standing pension arrears and reaffirm the government’s commitment to retired public sector workers.
Meanwhile, Nigeria’s total public debt stock has risen to ₦152.40 trillion as of June 30, 2025, according to data released by the Debt Management Office (DMO) in October.
The figure represents an increase of ₦3.01 trillion—or 2.01 per cent—from ₦149.39 trillion recorded at the end of March 2025. In dollar terms, total debt rose from $97.24 billion to $99.66 billion, reflecting a 2.49 per cent increase within three months.
DMO data also shows that Nigeria’s external debt grew to $46.98 billion (₦71.85 trillion) in June, up from $45.98 billion (₦70.63 trillion) in March.
The latest figures underscore the Federal Government’s growing reliance on both domestic and external borrowing to finance fiscal deficits, even as ongoing revenue reforms and foreign exchange liberalisation continue to reshape the country’s economic outlook.
