President Bola Tinubu has formally requested the National Assembly’s approval for a new ₦1.15 trillion domestic loan to help finance the deficit in the 2025 national budget.
The request was conveyed in a letter read by Senate President Godswill Akpabio during Tuesday’s plenary session. According to the President, the borrowing is necessary to close the fiscal gap and ensure effective execution of key government programmes and capital projects contained in the 2025 budget.
Tinubu noted that the loan request aligns with Section 44 (1) and (2) of the Fiscal Responsibility Act, 2007, and Section 1(7) of the Executive Order, which mandate legislative approval for new borrowings and appropriation of the loan proceeds.
Following the announcement, Akpabio forwarded the proposal to the Senate Committee on Local and Foreign Debt for scrutiny and directed the committee to report back within a week.
This latest borrowing request comes just five days after the Senate approved another presidential proposal— a $2.847 billion external loan package, including a $500 million debut Sovereign Sukuk—meant to support the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
According to the committee led by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North), $2.347 billion of the earlier loan would come from the international capital market, while $500 million would be raised through Sukuk bonds to fund critical infrastructure.
The request follows a series of borrowing moves by the Tinubu administration. In May 2025, the President sought Senate approval for a $21.5 billion external loan to finance infrastructure, healthcare, education, water projects, and other essential sectors.
He also requested authorisation to raise a ₦758 billion domestic bond to clear outstanding pension arrears under the Contributory Pension Scheme. The proposed bond issuance—valued at ₦757.9 billion—is aimed at addressing long-standing pension obligations to retired public workers.
Recent figures from the Debt Management Office show Nigeria’s total public debt has climbed to ₦152.40 trillion as of June 30, 2025—an increase of ₦3.01 trillion or 2.01% compared to the ₦149.39 trillion recorded in March.
In dollar terms, the nation’s debt rose from $97.24 billion to $99.66 billion within the same period, a 2.49% increase.
DMO data also revealed that Nigeria’s external debt grew to $46.98 billion (₦71.85 trillion) in June, up from $45.98 billion (₦70.63 trillion) three months earlier.
The rising figures highlight the Federal Government’s continued reliance on both domestic and external borrowing to manage fiscal pressures, even as revenue reforms and foreign exchange liberalisation continue to reshape the country’s economic trajectory.
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