President Bola Tinubu has asked the National Assembly to approve a new ₦1.15 trillion domestic loan to cover part of Nigeria’s 2025 budget deficit.
The request, contained in a letter read by Senate President Godswill Akpabio during Tuesday’s plenary, underscores the government’s increasing reliance on borrowing to sustain public spending.
Tinubu explained that the new loan aims to bridge the fiscal shortfall and ensure smooth execution of key programmes and projects outlined in the 2025 national budget.
He said the borrowing request falls under Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order, which mandates National Assembly approval for all new borrowings.
Senate Committee Begins Review Process
Following the letter’s reading, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debt for detailed consideration.
He directed the committee to present its report within one week to enable timely deliberation and approval.
The fresh domestic loan request comes just five days after the Senate approved another of Tinubu’s proposals, a $2.847 billion external borrowing plan, including a $500 million debut Sovereign Sukuk.
That package aims to finance parts of the 2025 fiscal deficit and refinance Nigeria’s maturing Eurobonds.
External Borrowing Plans and Rising Debt Load
According to the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu, $2.347 billion will be sourced from the international capital market, while $500 million will be raised through Sukuk bonds.
These funds will support infrastructure projects across the country, including roads, bridges, and public utilities.
The latest request also follows Tinubu’s earlier borrowing proposal in May 2025 for a $21.5 billion external loan to finance key projects in infrastructure, health, education, and water supply.
In the same period, he sought Senate approval for a ₦758 billion domestic bond to clear outstanding pension arrears under the Contributory Pension Scheme.
Nigeria’s Debt Surges to ₦152.4 Trillion
Nigeria’s total public debt stock has climbed to ₦152.40 trillion as of June 30, 2025, according to data from the Debt Management Office (DMO).
The figure represents a ₦3.01 trillion, or 2.01 percent increase, from ₦149.39 trillion recorded at the end of March.
In dollar terms, total debt rose from $97.24 billion to $99.66 billion within three months, a 2.49 percent increase, as both domestic and external borrowing expanded.
DMO data shows that external debt alone increased to $46.98 billion (₦71.85 trillion) in June, up from $45.98 billion (₦70.63 trillion) in March.
Outlook
Economists warn that without stronger fiscal discipline and improved revenue mobilisation, debt servicing could consume an even larger share of future budgets.
Tinubu’s administration faces the challenge of balancing economic reforms with maintaining debt sustainability and funding national development priorities.