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From Kenneth Udeh, Abuja
The Senate Wednesday, approved President Bola Ahmed Tinubu’s request to establish a ₦1.150 trillion domestic borrowing programme to bridge the unfunded gap in the 2025 budget deficit. The approval followed the consideration and adoption of the report of the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Magatakarda Wamakko.
President Tinubu’s request, contained in a communication dated October 31, 2025, and read during plenary on November 4, was made in compliance with the provisions of the Debt Management Office (Establishment) Act, 2003, and the Fiscal Responsibility Act (FRA), 2007.
In the communication, the President explained that the loan was necessary to fund the deficit created by the expansion of the 2025 Appropriation Act, which saw the budget increase to ₦59.99 trillion ₦5.25 trillion higher than the initial ₦54.74 trillion proposed by the Executive.
This adjustment, he said, resulted in a deficit of ₦14.10 trillion, out of which ₦12.95 trillion had already been provided for through previously approved borrowings, leaving an unfunded shortfall of about ₦1.15 trillion.
President Tinubu emphasized that the borrowing would be executed strictly under existing fiscal laws and guidelines, targeting long-term capital expenditure and human capital development. He also assured that all borrowings would be on concessional terms with low interest rates and extended repayment periods, in line with national debt sustainability frameworks.
Committee Findings
The Senate Committee on Local and Foreign Debt confirmed that the request was in line with statutory borrowing procedures. It reviewed relevant documents, including the 2025 Appropriation Act and the President’s communication, and verified the existence of authorization within the Appropriation Law for the proposed borrowing.
The committee noted that the increase in the budget size created an additional funding gap of ₦1,147,462,863,321, necessitating the establishment of the ₦1.150 trillion borrowing programme in the domestic debt market.
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Presenting the report, Senator Wamakko said the committee, after thorough consideration, recommended that the Senate approve the borrowing request to fund the 2025 fiscal deficit.
The key recommendations adopted by the Senate included:
1. Approval of the President’s request to raise ₦1.150 trillion through the domestic debt market to cover the unfunded deficit created by the expanded budget size.
2. A directive to the Federal Ministry of Finance and the Debt Management Office (DMO) to ensure that all borrowing terms are favorable, transparent, and sustainable.
3. A mandate to the Senate Committee on Local and Foreign Debt to oversee the implementation and utilization of the loan proceeds, receive quarterly reports from the Finance Ministry and DMO, and monitor compliance with debt sustainability thresholds.
4. An additional motion by Senator Abdul Ningi urging the Appropriation Committee to ensure strict oversight of the fund’s application to guarantee that the borrowed amount is used solely for the purposes approved.
Presiding over the session, Deputy Senate President Barau Jibrin commended Senator Wamakko and members of the committee for their “thorough and timely” work on the report. “You have done a wonderful job. The report is precise, very clear, and you concluded your assignment within the shortest possible time,” he remarked.
With the adoption of the committee’s recommendations, the Senate’s approval clears the way for the Federal Government to access ₦1.150 trillion from the domestic debt market to support the implementation of the 2025 fiscal plan and sustain the administration’s economic recovery efforts.
