The House of Representatives has approved President Bola Tinubu’s request to borrow N1.15 trillion from the domestic debt market to finance the 2025 budget deficit, following the recent upward revision of the national budget.
The approval came after the House adopted the report of its Committee on Aids, Loans, and Debt Management during plenary on Wednesday. Presenting the report, Committee Chairman Abubakar Nalaraba (APC, Nasarawa), explained that the borrowing would help bridge the unfunded gap created by the increase in the budget size beyond earlier revenue and borrowing projections.
President Tinubu had earlier requested in a letter to Speaker Tajudeen Abbas, which was read on the floor by Deputy Speaker Benjamin Kalu last week. In the letter, Tinubu emphasised that the additional borrowing was necessary to balance the fiscal plan in compliance with the Fiscal Responsibility Act (FRA) 2007.
The president noted that the National Assembly had passed a ₦59.99 trillion budget, representing an upward adjustment of ₦5.25 trillion from the ₦54.74 trillion initially proposed by the executive. This revision widened the deficit to ₦14.10 trillion, while only ₦12.95 trillion had been approved for borrowing, leaving a shortfall of ₦1.15 trillion.
Citing Sections 44(1) and (2) of the FRA, Tinubu stressed that all new federal borrowings require legislative approval. The House subsequently granted the request, paving the way for the Federal Government to raise the additional funds domestically.
The approval followed a tense legislative week in which lawmakers, expressing concern over poor capital budget implementation, suspended Tuesday’s plenary after failing to consider items on the Order Paper.
