Senate Okays Tinubu’s ₦1.15trn Borrowing Plan

Abuja: The Nigerian Senate has approved President Bola Tinubu‘s request to borrow ₦1.15 trillion domestically, a move aimed at bolstering the government’s finances and sustaining key economic programmes amid mounting fiscal pressures.

The approval followed the adoption of the Senate Committee on Local and Foreign Debts’ report.

The report was presented by the Vice Chairman of the Committee, Senator Manu Haruna (APC – Taraba).

Tinubu had, on Tuesday, Nov. 4, in a letter, urged the Senate to approve the domestic loan request to finance the deficit in the 2025 Appropriation Bill.

Upon receipt of the request, the Senate mandated its committee on local and foreign debts to provide further legislative inputs and report back to the plenary as soon as possible.

Presenting the committee’s report, Haruna stated that a budget of N59.99 trillion was approved in the 2025 Appropriation Act, representing an increase of N5.25 trillion from the N54.74 trillion budget initially proposed by the executive.

He said that the increase created a budget deficit of N14.10 trillion, saying that the proposed borrowing approval in the budget was N12.95 trillion, which caused an unfunded deficit of N1.147 trillion.

He said it was, therefore, necessary to increase the domestic limit in the 2025 budget by N1.147 to close the gap.

Haruna urged the Senate to approve President Tinubu’s borrowing request from the domestic market to close the unfunded deficit gap created by the increase in the budget size.

Sen. Abdul Ningi (APC – Bauchi) said there was a need to act on the committee’s recommendations, advising that the Committee on Appropriation should, as a matter of exigency, liaise with both the Debt Management Office and the Budget Office to ensure adequate appropriation to service the budget.

“We call on the appropriation committee to give this Senate an analysis and development on the borrowing.

“So from oversight, implementation and utilisation of proceeds from the borrowing, receiving quarterly reports, monitoring compliance,” he said.

Sen. Adeola Solomon (APC-Ogun) commended the committee for the report, describing it as a “beautiful” document.

Adeola said he agreed 100 per cent with the committee’s findings, stating that it was a true reflection of what transpired during the budget process.

He said that to fill the borrowing gap, there was a need to come up with a plan on how the money would be sourced within the shortest possible time.

This, he said, would enable the continuous funding of the 2025 Appropriation Act, particularly the implementation of the capital components of the budget through project execution.

The Senate, after approving the loan request, urged the Federal Ministry of Finance and the Debt Management Office to undertake the borrowing strictly within the approved fiscal parameters, ensuring that all terms and conditions are favourable, transparent, and sustainable.

It also mandated the Committee on Local and Foreign Debt to oversee the implementation and utilisation of proceeds from the approved borrowing.

It urged the committee to receive quarterly reports from the Ministry of Finance and the Debt Management Office on the status, utilisation, and repayment plans, and to monitor compliance with debts, sustainability, thresholds, and fiscal responsibility.

It also urged the committee to review the implementation and utilisation of proceeds from the approved fiscal parameters.

It further mandated the committee on appropriation to ensure that the borrowing was actually used for the purpose for which it was required to fund the deficit in the 2025 appropriation bill.

Deputy President of the Senate, Sen. Barau Jibrin (APC-Kano), who presided over the plenary, commended the committee on local and foreign debts for a job well done.

“The report is precise, direct to the point and unequivocal. On behalf of the Senate, I commend the committee and thank the chairman, deputy chairman and members for their diligent work in a very short time,” Jibrin said.