By Muhammed Akindele
President Bola Tinubu has again written to the Senate seeking approval to borrow N1.15 trillion from the domestic debt market to finance part of the deficit in the 2025 national budget.
The request, contained in a letter read by Senate President Godswill Akpabio during Tuesday’s plenary, marks another addition to the administration’s growing borrowing plan aimed at sustaining government programmes amid rising fiscal pressure.
According to Tinubu, the new borrowing is intended to “bridge the funding gap and ensure the full implementation of government programmes and projects” under the 2025 fiscal framework.
Akpabio referred the request to the Senate Committee on Local and Foreign Debt for further legislative consideration and directed the committee to report back within one week for further action.
New Request Follows $2.8bn Loan Approval
The fresh loan request comes barely five days after the Senate approved another of the President’s borrowing proposals — a $2.847 billion external loan, which includes a $500 million debut Sovereign Sukuk, meant to finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The earlier 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’s report, $2.347 billion will be sourced from the international capital market, while $500 million will be raised through Sukuk bonds to fund key infrastructure projects across the country.
Rising Concerns Over Debt Profile
The Senate’s fresh endorsement comes amid growing public concern over Nigeria’s rising debt burden, which the Debt Management Office (DMO) estimated at over N97 trillion by mid-2025.
Critics have repeatedly warned that continued borrowing could push the country toward unsustainable debt levels. However, government officials and several lawmakers maintain that strategic borrowing remains crucial to sustaining growth, financing infrastructure, and maintaining investor confidence.
Recall that Tinubu had, on October 8, 2025, written to the Senate seeking approval for a new set of foreign loans under the 2025 fiscal framework to finance critical national projects and manage Nigeria’s debt obligations.
Senators Defend Borrowing Plan
Presenting the earlier report, Senator Wamakko said the borrowing plan was necessary to maintain economic stability, continue key projects, and preserve Nigeria’s international credit reputation.
“The borrowing plan is essential for Nigeria’s economic stability and to ensure that the country meets its 2025 funding needs without derailing ongoing fiscal commitments,” he stated.
Supporting the move, Chairman of the Senate Committee on Finance, Senator Sani Musa (APC, Niger East), said the loan approval was vital for implementing the 2025 Appropriation Bill.
“It is very necessary that we give approval to this request so that the 2025 appropriation will be given the necessary funding,” Musa said.
Similarly, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru (APC, Lagos East), explained that the borrowing would not worsen Nigeria’s debt burden but was already captured as part of the deficit financing in the 2025 Appropriation Act.
“This is more of a compliance issue,” Abiru clarified. “The second request is a refinancing arrangement to ensure that the country does not default in Eurobond servicing.”
Also defending the government’s borrowing approach, Senator Adams Oshiomhole (APC, Edo North) said there was nothing wrong with borrowing if loans were well-structured and targeted at productive sectors.
“There’s nothing wrong with borrowing if it is properly structured and used to address critical issues like unemployment and infrastructural decay,” Oshiomhole said.
