Nigeria’s President Bola Tinubu has asked the National Assembly to approve an additional borrowing of 1.15 trillion naira from the domestic debt market to finance the deficit in the 2025 budget. The request, read during a Senate plenary session on Tuesday, aims to close the funding gap and ensure full implementation of government programs and projects under the 2025 fiscal plan.
In a letter to the Senate, the president highlighted the need for extra funds to support the government’s initiatives. Senate President Godswill Akwashiki has referred the request to the Senate Committee on Local and Foreign Debt for review, with the committee expected to report back within a week. The committee’s assessment will examine the feasibility of the borrowing and its potential impact on the economy, informing the Senate’s subsequent decision.
The 2025 budget deficit has been a source of concern, and the proposed borrowing is seen as a measure to mitigate its effects. Nigeria’s reliance on domestic borrowing has been rising, and this new request would bring total borrowing for the year to a significant level, with implications for the country’s debt profile and economic stability.
The Senate’s consideration of the request is crucial, as its outcome will shape Nigeria’s fiscal policy and have far‑reaching consequences for the economy. Stakeholders will be watching closely as the Committee on Local and Foreign Debt reviews the proposal, and the committee’s report, followed by the Senate’s decision, will determine the direction of Nigeria’s fiscal management amid ongoing economic challenges.
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