Abuja, Nigeria — President Bola Ahmed Tinubu has formally requested the National Assembly’s approval to secure an additional ₦1.15 trillion domestic loan to finance part of the deficit in the 2025 national budget, as Nigeria continues to grapple with widening fiscal gaps amid ambitious public expenditure plans.
The President’s request was contained in an official letter addressed to both chambers of the National Assembly and read aloud during Tuesday’s plenary by Senate President Godswill Akpabio. The correspondence, titled “Request for Approval to Borrow ₦1.15 Trillion from the Domestic Market,” cited Section 44 (1) and (2) of the Fiscal Responsibility Act (2007), which mandates legislative consent before any new borrowing by the Federal Government.
According to the letter, the proposed loan is to bridge the unfunded portion of the 2025 budget deficit, which arose following the National Assembly’s decision to approve a ₦59.9 trillion budget—an increase of about ₦5.25 trillion over the Executive’s initial proposal. The upward revision, though intended to address key social and infrastructural priorities, created a financing gap that now threatens to strain the fiscal balance.
“The request for this loan becomes imperative to ensure the full implementation of the 2025 Appropriation Act and to maintain fiscal stability while sustaining ongoing government projects,” President Tinubu explained in his letter.
The President emphasised that the loan will be sourced from the domestic capital market, a move expected to reduce exposure to foreign exchange risks and external borrowing costs.
In his remarks, Senate President Godswill Akpabio acknowledged receipt of the request and referred it to the Senate Committee on Local and Foreign Debts, chaired by Senator Haruna Manu, for consideration and report within one week.
The committee is expected to scrutinise the proposal, examine its potential impact on Nigeria’s debt sustainability framework, and determine whether the borrowing aligns with existing fiscal limits set by law.
Nigeria’s fiscal deficit has remained a major challenge, driven by weak revenue mobilisation, high debt servicing obligations, and expanding public sector commitments. The 2025 budget projects a deficit of ₦14 trillion, much of which the government plans to finance through a mix of domestic and external borrowing, as well as proceeds from privatisation and asset sales.
Analysts, however, warn that the new loan request could further elevate Nigeria’s domestic debt profile, currently standing at over ₦65 trillion, and may exert pressure on local interest rates and private sector credit access.
Economic observers also note that while borrowing to fund development is not unusual, the government must ensure that such loans are strategically directed towards growth-yielding sectors capable of stimulating job creation and improving productivity.
The development has reignited conversations around Nigeria’s fiscal discipline and the need for stronger revenue diversification mechanisms. With oil revenues fluctuating and non-oil collections still below expectations, the Federal Government faces mounting pressure to expand the tax net, enhance public financial management, and curb recurrent expenditure.
If approved, the ₦1.15 trillion domestic borrowing will add to existing debt obligations under the 2025 fiscal framework, which already includes over ₦8 trillion in planned new borrowings.
President Tinubu’s fresh loan request underscores the administration’s determination to fully implement the 2025 budget while maintaining economic stability. Yet, it also exposes the delicate balance between stimulating growth and managing debt prudently—a challenge that continues to define Nigeria’s fiscal trajectory in the post-subsidy era.
The coming days will determine how swiftly the National Assembly acts—and whether lawmakers will endorse yet another borrowing plan in a fiscal environment that remains tight, uncertain, and deeply consequential for Africa’s largest economy.
