Tinubu Seeks Senate Approval to Borrow ₦1.15 Trillion to Fund 2025 Budget Deficit

President Bola Tinubu has asked the Senate to approve the borrowing of ₦1.15 trillion from the domestic debt market to close the funding gap in the 2025 national budget. The request was read on Tuesday during plenary by Senate President Godswill Akpabio, marking another move by the administration to sustain key government programmes amid a tightening fiscal environment.

According to the President, the proposed borrowing is intended to bridge the deficit and ensure the full execution of government projects and programmes under the 2025 fiscal plan. Akpabio referred the request to the Senate Committee on Local and Foreign Debt for review and directed the committee to submit its report within one week for legislative action.

The request follows last week’s Senate approval of another borrowing plan — $2.847 billion in external loans, including a $500 million Sovereign Sukuk bond, to finance the 2025 budget and refinance maturing Eurobonds. The Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North), confirmed that $2.347 billion would come from the international capital market, while the remaining $500 million would be raised through Sukuk bonds to fund infrastructure projects across the country.

This fresh borrowing plan comes amid public concern about Nigeria’s rising debt stock, which, according to the Debt Management Office (DMO), had exceeded ₦97 trillion as of mid-2025. While critics caution that the continuous borrowing could edge the nation toward a debt sustainability crisis, government officials and lawmakers insist that strategic borrowing remains vital for maintaining economic stability, funding infrastructure and sustaining investor confidence.

Tinubu had earlier, on October 8, 2025, written to the Senate seeking approval for foreign loans under the 2025 fiscal framework to fund critical national projects and manage Nigeria’s debt obligations. Presenting the earlier report, Senator Wamakko defended the borrowing, saying it was necessary to keep the economy stable and ensure continuity of key projects.

Senator Sani Musa (APC, Niger East), Chairman of the Senate Committee on Finance, also supported the move, stressing that the funding was essential for implementing the 2025 Appropriation Act. Senator Adetokunbo Abiru (APC, Lagos East), who chairs the Banking, Insurance and Other Financial Institutions Committee, clarified that the loan would not worsen Nigeria’s debt burden as it was already part of the approved fiscal framework.

Echoing similar sentiments, Senator Adams Oshiomhole (APC, Edo North) argued that borrowing was acceptable if well-structured and targeted at productive sectors such as job creation and infrastructure renewal.

With this latest request, the Tinubu administration aims to strengthen Nigeria’s fiscal position as it confronts declining oil revenue, high inflation and mounting debt-servicing costs ahead of the 2025 financial year.