The Senate on Wednesday approved President Bola Tinubu’s request to raise ₦1.15 trillion through domestic borrowing to cover the funding shortfall in the 2025 Appropriation Act.
The resolution of the red chamber followed its adoption of a report presented by the Senate Committee on Local and Foreign Debts, which highlighted a financing gap created after the National Assembly increased the budget size beyond the Executive proposal.
Presenting the committee’s findings, Deputy Chairman Senator Manu Haruna, explained that the 2025 budget, as passed by the National Assembly, stood at ₦59.99 trillion, up from the ₦54.74 trillion earlier proposed by the Executive.
He added that since the original borrowing plan approved by the Executive was ₦12.95 trillion, an additional ₦1.147 trillion borrowing was required to close the gap.
“It is therefore necessary to increase the domestic borrowing limit in the 2025 budget to close this gap,” Haruna said.
The committee recommended that the Federal Ministry of Finance and the Debt Management Office (DMO) undertake borrowing strictly within approved fiscal parameters and ensure transparency, accountability, and debt sustainability.
Supporting the report, Chairman of the Senate Committee on Appropriations, Senator Solomon Adeola (APC – Ogun West), said the borrowing was crucial to the timely implementation of the 2025 budget, particularly capital projects, and commended the decision to source the funds locally.
Senator Abdul Ningi (Bauchi Central) called for enhanced oversight by both the Appropriations and Debt Committees to ensure the funds are utilised strictly for the purposes approved by the National Assembly.
The motion was seconded by Senator Mohammed Tahir Monguno (APC – Borno North), who stressed the need for transparency and adherence to debt management guidelines.
With the Senate’s approval, the Federal Government is now authorised to raise ₦1.15 trillion from domestic sources to bridge the 2025 budget deficit and ensure the smooth execution of the nation’s fiscal plans.
