President Bola Tinubu has written to the House of Representatives seeking approval to establish a ₦1.15 trillion borrowing programme in the domestic debt market to bridge the funding gap in the 2025 national budget.
The request was conveyed in a letter read by the Speaker of the House, Rep. Abass Tajudeen, during Wednesday’s plenary session in Abuja.
Tinubu explained that the additional borrowing had become necessary following the increase in the total budget size approved by the National Assembly, which created an unfunded deficit.
“I write to kindly request for the approval of the National Assembly to establish a ₦1.15 trillion borrowing programme in the domestic debt market,”
the President’s letter stated.
He noted that the request was in accordance with Section 44(1) and (2) of the Fiscal Responsibility Act (FRA), 2007, which requires legislative approval for all new borrowings by the Federal Government.
According to the letter, the National Assembly had passed a ₦59.99 trillion budget for 2025 an increase of about ₦5.25 trillion from the ₦49.74 trillion initially proposed by the Executive.
The President said the adjustment by lawmakers led to a total deficit of ₦14.10 trillion, while only ₦12.95 trillion had been approved for borrowing in the budget, leaving an unfunded gap of ₦1.15 trillion.
READ ALSO:Jigawa State Assembly approves N58bn supplementary budget
Tinubu therefore requested the House’s approval to increase the domestic borrowing limit by the same amount in order to fully finance the budget and ensure smooth implementation of government programmes and projects.
The President emphasised that the additional borrowing would be sourced locally through government securities in line with the country’s debt management strategy, which prioritises domestic debt over external loans to reduce exchange rate exposure.
He assured lawmakers that the Federal Government remained committed to fiscal discipline, prudent borrowing, and the sustainability of Nigeria’s public debt profile.
The proposed borrowing plan, according to economic analysts, forms part of the administration’s broader strategy to stimulate growth, fund critical infrastructure, and strengthen social welfare programmes under the Renewed Hope Agenda.
Lawmakers are expected to deliberate on the President’s request in subsequent plenary sessions, after which it will be referred to the relevant committees on finance, appropriation, and national planning for legislative scrutiny before approval.
