Nigerian economist Bismarck Rewane, managing director and chief executive officer of Financial Derivatives Company Limited, has downplayed concerns about President Bola Tinubu’s recent request for a fresh 1.15 trillion‑naira domestic loan to finance the 2025 budget deficit. Speaking on Channels Television’s Business Morning program, Rewane explained that the loan approval sought from the National Assembly is essentially a formality to ratify existing budget provisions rather than an addition to the country’s debt burden.
According to Rewane, the increased revenue generated by the federal government’s suspension of subsidies will enable timely debt repayment. He emphasized that the requested loan is not new borrowing but a ratification of the budget’s financing plan, which already includes the issuance of bonds and other financial instruments. The 2025 budget projects a deficit of roughly 13–14 trillion naira against a total budget of over 54 trillion naira, and the President’s request is intended to bridge this gap and ensure full implementation of government programmes and projects.
The President’s request was conveyed to the National Assembly in a letter read on the Senate floor and has been referred to the Senate Committee on Local and Foreign Debt for review. The committee is expected to report back within a week, paving the way for further legislative action. Rewane’s assessment suggests that the loan request is a standard procedure to secure funding for the budget, not a cause for alarm, and that the higher revenue from subsidy suspension should prevent repayment problems. As the National Assembly considers the request, the outcome will be closely watched to determine the next steps in addressing the 2025 budget deficit.
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