Nigeria’s upper legislative chamber on Wednesday gave the green light to President Bola Ahmed Tinubu’s appeal to secure N1.15 trillion from local financial markets, a move aimed at covering the remaining deficit in the nation’s 2025 fiscal plan.
The decision came after lawmakers considered and adopted recommendations from the Senate Committee on Local and Foreign Debt, which is headed by Senator Aliyu Magatakarda Wamakko, representing Sokoto North Senatorial District under the All Progressives Congress (APC) platform.
Senator Haruna Manu, who serves as Vice Chairman of the committee and represents Taraba Central Senatorial District under the Peoples Democratic Party (PDP), presented the report during Wednesday’s plenary session. He emphasized the urgent need to authorize the borrowing plan to close the funding shortfall and sustain the government’s development initiatives.
The 2025 Appropriation Act, as passed by the National Assembly, sets total government spending at N59.99 trillion. This figure represents a substantial increase of N5.25 trillion above the N54.74 trillion that the Executive branch originally submitted for consideration.
This upward revision has resulted in a budget deficit totaling N14.10 trillion. While previous approvals covered N12.95 trillion through various borrowing arrangements, approximately N1.147 trillion remained unfunded, creating the gap that necessitated this fresh request.
In his written communication to the National Assembly on November 4, President Tinubu cited the Fiscal Responsibility Act of 2007, specifically Section 44, Subsections 1 and 2, which mandates parliamentary approval for all new federal borrowing. The President explained that the legislative increase in the budget size beyond previously approved revenue projections and borrowing plans created an unfunded deficit that must be addressed.
“The distinguished President of the Senate may wish to note that the National Assembly passed a budget of N54.9 trillion, an increase of N5.25 trillion from the N49.74 trillion budget proposal by the Executive,” President Tinubu wrote in the correspondence.
Senate President Godswill Akpabio, after receiving the presidential request, had referred the matter to Senator Wamakko’s committee with a one-week deadline for review and recommendations.
In a related motion adopted during the same session, Senator Abdul Ningi, representing Bauchi Central Senatorial District, urged the Senate Committee on Appropriations to strengthen oversight mechanisms. This directive aims to ensure that all borrowed funds are deployed strictly according to their stated purposes and properly implemented throughout the 2025 fiscal year, with particular emphasis on capital project execution.
The approval authorizes the Federal Ministry of Finance and the Debt Management Office to proceed with the borrowing program within established fiscal parameters. The Senate has mandated that all terms and conditions must remain favorable, transparent, and sustainable for the nation’s economic health.
The Committee on Local and Foreign Debt has been tasked with monitoring the implementation and utilization of the loan proceeds. The committee will receive quarterly reports from the Ministry of Finance and Debt Management Office covering the borrowing status, fund utilization patterns, and repayment schedules.
This latest approval comes approximately two weeks after the National Assembly authorized another presidential borrowing request valued at $2.3 billion, underscoring the government’s reliance on debt financing to support its economic programs and infrastructure development agenda.