President Tinubu Seeks Senate Approval for Fresh ₦1.15 Trillion Domestic Loan
President Bola Ahmed Tinubu has officially requested Senate approval for a fresh ₦1.15 trillion domestic loan to help bridge the federal government’s 2025 budget deficit.
The request was contained in a letter addressed to Senate President Godswill Akpabio and read during Tuesday’s plenary session at the National Assembly.
Tinubu explained that the borrowing would ensure the smooth implementation of critical projects and programs under the 2025 fiscal plan, particularly those related to infrastructure, job creation, and social investment.
“The proposed borrowing is designed to address the funding gap and guarantee the full execution of key initiatives outlined in the 2025 budget,” Tinubu stated.
Senate Refers Request for Review
Following the presentation of the letter, Senate President Akpabio referred the loan request to the Senate Committee on Local and Foreign Debt for analysis and recommendations.
The committee has been directed to submit its report within one week, after which lawmakers will deliberate and vote on whether to grant the president’s request.
The move aligns with the federal government’s broader medium-term fiscal framework, which combines both domestic and external borrowing to fund developmental projects and address persistent revenue shortfalls.
Part of Broader Borrowing Strategy
The new domestic loan proposal comes on the heels of several recent approvals by the National Assembly in support of the administration’s financing plans.
Last month, the House of Representatives approved Tinubu’s request to borrow $2.35 billion to partially finance the 2025 budget deficit. The chamber also endorsed the issuance of a $500 million debut sovereign Sukuk in the international capital market to fund infrastructure and diversify financing sources.
Earlier in July, the Senate approved a $21.5 billion external borrowing plan covering the 2025–2026 fiscal period. It also gave the green light for the issuance of a ₦757 billion Federal Government Bond to settle pension arrears under the Contributory Pension Scheme (CPS) as of December 2023.
Nigeria’s Public Debt Rising
According to the Debt Management Office (DMO), Nigeria’s total public debt climbed to ₦149.39 trillion as of March 31, 2025, marking a 22.8% increase year-on-year from ₦121.67 trillion in March 2024.
In the same period, the DMO successfully raised ₦1.39 trillion through the issuance of Sukuk bonds in the local capital market, channelled toward the construction and rehabilitation of major roads and bridges nationwide.
Economic Implications
Analysts say Tinubu’s latest borrowing request underscores the administration’s continued dependence on debt financing amid limited non-oil revenue generation.
While the move could stimulate economic activity and sustain key infrastructure projects, it also raises concerns about Nigeria’s growing debt burden and future repayment obligations.
Economists note that domestic borrowing offers some strategic advantages over foreign loans. Since repayment is made in naira, it reduces foreign exchange exposure, mitigates currency risks, and supports liquidity in the domestic bond market.
However, experts caution that sustained reliance on debt must be matched with revenue reforms, fiscal discipline, and effective project monitoring to avoid long-term fiscal stress.
The Road Ahead
As the Senate prepares to deliberate on the ₦1.15 trillion domestic loan request, the decision will serve as a key test of the Tinubu administration’s fiscal management strategy in an environment of tight revenues, high inflation, and increasing debt service costs.
The outcome of the Senate’s review — expected within a week — will shape the trajectory of Nigeria’s 2025 budget implementation and broader economic recovery efforts.
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