The Nigerian Senate has approved President Bola Tinubu’s request to raise N1.15 trillion from the domestic debt market, a move intended to cover the unfunded portion of the 2025 budget deficit. The approval came after the Senate Committee on Local and Foreign Debt presented its report during a plenary session on Wednesday.
The 2025 Appropriation Act sets total expenditure at N59.99 trillion, an increase of N5.25 trillion from the initial proposal of N54.74 trillion. This expansion has produced a budget deficit of N14.10 trillion, of which N12.95 trillion has already been approved for borrowing, leaving a shortfall of about N1.15 trillion.
To ensure the borrowed funds are used appropriately, the Senate adopted a motion directing the Committee on Appropriations to intensify its oversight. This is meant to guarantee that the funds are applied strictly to their intended purposes in the 2025 fiscal year.
President Tinubu originally sought the National Assembly’s approval for the fresh N1.15 trillion borrowing on 4 November. The proposed borrowing is meant to bridge the funding gap and enable full implementation of government programs and projects under the 2025 fiscal plan. Approval of the loan is significant because it will allow the government to finance its budget deficit and carry out development projects amid ongoing fiscal challenges.
The Senate’s decision to strengthen oversight of the borrowed funds is a welcome step, as it should help ensure efficient and effective use of the resources. This development is crucial for implementing the 2025 budget, and the government is expected to work closely with relevant stakeholders to achieve the desired outcomes. With the loan approved, the government can now focus on executing its development projects and programs, which are anticipated to have a positive impact on the country’s economy and its citizens.
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