President Bola Tinubu has formally requested the approval of the Senate to borrow N1.15 trillion from the domestic debt market to address a deficit in the 2025 national budget. This request, detailed in a letter read by Senate President Godswill Akpabio during a plenary session, is part of ongoing efforts by the government to sustain its programs amid a challenging fiscal environment.

The President stated that the new borrowing would “bridge the funding gap and ensure the full implementation of government programs and projects” outlined in the 2025 fiscal plan. Following the presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debt for further consideration, directing them to report back within a week.

This move comes shortly after the Senate approved another borrowing plan of $2.847 billion to finance the 2025 budget deficit and refinance maturing Eurobonds, which included a $500 million debut Sovereign Sukuk aimed at funding key infrastructure projects.

Concerns over Nigeria’s growing debt profile, which surpassed N97 trillion by mid-2025, have been voiced by critics who warn that continued borrowing could lead to unsustainable debt levels. However, government officials maintain that strategic borrowing is essential for economic stability and infrastructure development.

Senator Wamakko, chair of the Senate Committee on Local and Foreign Debts, justified the need for the borrowing, emphasizing its role in maintaining Nigeria’s international credit reputation and supporting ongoing fiscal commitments. Similarly, other senators supported the request, asserting that well-structured loans targeted at productive sectors could stimulate economic activity.