By Nchetachi Chukwuajah
The Senate has approved President Bola Tinubu’s loan request of N1.15 trillion to be sourced from the domestic debt market to cover the unfunded portion of the 2025 budget deficit.
The Red Chamber’s approval of the request followed the adoption of a report by the Senate Committee on Local and Foreign Debt during plenary on Wednesday, November 12.
According to the committee, the 2025 Appropriation Act provides for a total expenditure of N59.99 trillion, representing a N5.25 trillion increase from the initial N54.74 trillion proposed by the executive.
The increase resulted in a total budget deficit of N14.10 trillion, of which N12.95 trillion had already been approved for borrowing, leaving an unfunded deficit of approximately N1.15 trillion (N1,147,462,863,321).
Recall that on November 4, President Tinubu requested the fresh N1.15 trillion domestic borrowing, stating that it would bridge the funding gap and ensure full implementation of key government programmes and projects under the 2025 budget.
The loan request came barely five days after the Senate approved a $2.847 billion external borrowing plan requested by Tinubu, which included a $500 million debut Sovereign Sukuk aimed at financing the 2025 budget deficit and refinancing Nigeria’s maturing Eurobonds.
The approval for the $2.847 billion loan followed the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu.
The committee said the $2.347 billion would be sourced from the international capital market, while the remaining $500 million would come from Sukuk bonds to fund key infrastructure projects nationwide.
The president had also made a borrowing request in May 2025, seeking the Senate’s approval for a $21.5 billion external loan to finance critical projects across various sectors of the economy, particularly infrastructure, health, education, and water supply.
The president’s loan requests raised concerns about the country’s total public debt stock, which stood at N152.40 trillion as of June 30, 2025, according to data released by the Debt Management Office (DMO) in October.
