Reps approves Tinubu’s N1.15trn loan request for domestically to fund 2025 budget deficit

The House of Representatives has approved President Bola Ahmed Tinubu’s proposal to raise an additional ₦1.15 trillion from the domestic debt market to bridge the funding shortfall in the 2025 national budget.

The approval, granted during Wednesday’s plenary, followed the adoption of a report by the House Committee on Aids, Loans and Debt Management, chaired by Abubakar Nalaraba.

The new borrowing authorisation comes barely two weeks after lawmakers cleared Tinubu’s request for $2.35 billion in foreign loans and a $500 million sovereign sukuk to support key infrastructure and reduce the 2025 fiscal deficit.

House Backs Domestic Borrowing to Plug ₦1.15trn Gap

Presenting the report, Nalaraba explained that the additional borrowing became necessary after lawmakers expanded the 2025 Appropriation Act, raising total expenditure from ₦49.74 trillion to ₦59.99 trillion.

The revision created a ₦14.10 trillion deficit, of which ₦12.95 trillion was already covered under existing borrowing provisions.

“The additional ₦1.15 trillion will be sourced locally to close the remaining gap,” Nalaraba said.

The House subsequently dissolved into the Committee of Supply, chaired by Deputy Speaker Benjamin Kalu, to consider the report clause by clause before giving final approval.

Tinubu Cites Fiscal Responsibility Act

Tinubu’s borrowing request, conveyed in a letter dated October 31, referenced Section 44 (1–2) of the Fiscal Responsibility Act, 2007, which mandates legislative consent for any new federal borrowing.

The President said the domestic borrowing will ensure timely implementation of the revised 2025 budget and sustain key government programmes amid revenue constraints.

External Borrowing Plan Already Approved

Last month, lawmakers endorsed Tinubu’s plan to raise $2.347 billion from the international capital market, including $1.229 billion in new loans to bridge the ₦9.27 trillion deficit and $1.118 billion to refinance a Eurobond maturing in November 2025.

The funds, Tinubu said, would be raised through Eurobonds, syndicated loans, or direct borrowing from international financial institutions, depending on market conditions.

He assured that the Finance Ministry and Debt Management Office (DMO) will collaborate with financial advisers to secure favourable loan terms and maintain debt sustainability.

Fiscal Outlook and Debt Strategy

Analysts say the move underscores the government’s reliance on debt financing amid weak revenue mobilisation.

Nigeria’s public debt stock exceeded ₦97 trillion as of mid-2025, following multiple rounds of domestic and external borrowings to support fiscal operations.

Despite the rising debt profile, the CBN and DMO maintain that Nigeria’s debt-to-GDP ratio remains within acceptable limits, though rising debt servicing costs continue to pressure public finances.