President Bola Ahmed Tinubu has asked the Senate to approve a new ₦1.15 trillion domestic loan to help finance the deficit in the 2025 budget.
The request, contained in a letter read by Senate President Godswill Akpabio during Tuesday’s plenary, underscores the administration’s continuing effort to balance rising fiscal pressures with its ambitious spending commitments.
According to the President, the borrowing will come from the domestic debt market and is intended to close the funding gap in the budget, ensuring that key government projects and social programmes for the 2025 fiscal year are fully implemented.
Akpabio, after reading the letter, referred the request to the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wammako (APC, Sokoto North).
The committee is expected to review the proposal and submit its report within one week for further legislative action.
This fresh loan request adds to Nigeria’s growing domestic debt stock, a trend that continues to draw mixed reactions.
While government officials insist borrowing remains essential to sustain development projects and stabilize the economy, critics warn of the long-term strain on public finances and the risk of crowding out private investment.
As the Senate begins deliberations, attention will turn to how the Tinubu administration intends to balance its reform agenda with the realities of mounting debt and sluggish revenue growth.