The approval followed the adoption of a report by the Senate Committee on Local and Foreign Debts.
By Deborah Hassan
365Daily – The Senate on Wednesday approved President Bola Tinubu’s request to raise N1.15 trillion from the domestic debt market to close the funding gap in the 2025 national budget.
The approval followed the adoption of a report by the Senate Committee on Local and Foreign Debts, presented by Senator Haruna Manu (PDP, Taraba Central) on behalf of the committee chairman, Senator Wamakko Magatarkada (APC, Sokoto North).
In its findings, the committee explained that while the National Assembly raised the 2025 Appropriation Bill from ₦54.74 trillion to ₦59.99 trillion during passage, the upward adjustment created a financing deficit of ₦14.10 trillion. Of this, only ₦12.95 trillion had been captured in the borrowing plan, leaving a shortfall of ₦1.147 trillion.
“To bridge this gap, it is necessary to increase the domestic borrowing limit in the 2025 budget by ₦1.147 trillion,” the report stated.
Under the approved plan, the Ministry of Finance and the Debt Management Office (DMO) will source the funds locally, guided by existing fiscal parameters and debt sustainability rules. The Senate directed the agencies to ensure that “all terms and conditions are favorable, transparent and sustainable.”
Lawmakers also mandated the Committee on Local and Foreign Debts to oversee the borrowing process, track the use of funds, and receive quarterly reports from the Finance Ministry and DMO on loan utilisation and repayment plans.
Senator Solomon Adeola Olamilekan (APC, Ogun West) backed the report, describing the borrowing as necessary to keep the 2025 budget on track.
“The committee’s report reflects what truly transpired during the budget process,” he said. “Since the approved budget created an additional ₦1.147 trillion deficit, it’s only logical to close that gap through domestic borrowing to sustain capital project implementation.”
Senator Abdul Nengi (PDP, Bauchi Central) also supported the move but urged the Senate to strengthen monitoring mechanisms.
“This borrowing is vital for financing the 2025 Appropriation Act,” Nengi noted. “However, the Appropriation Committee should work closely with the DMO and Budget Office to ensure accountability and proper tracking.”
Following his suggestion, senators added a new clause mandating the Appropriation Committee to confirm that the borrowing is used strictly for its intended purpose.
The motion was seconded and unanimously adopted.
“With this decision,” Senate President Barau said, “the Senate has acted responsibly to safeguard the 2025 budget and uphold transparency in government borrowing.”