Reps approve Tinubu’s fresh ₦1.150 trillion borrowing plan to fund 2025 budget deficit

The House of Representatives has approved President Bola Tinubu’s request to raise an additional ₦1.150 trillion through domestic borrowing to fund the 2025 national budget.

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The approval followed the consideration and adoption of a report presented on Wednesday by the House Committee on Aids, Loans and Debt Management, chaired by Abubakar Nalaraba.

Presenting the report during plenary, Mr Nalaraba explained that the new borrowing programme is designed to close the unfunded deficit created by the recent increase in the 2025 budget size, which exceeded the initially approved revenue and borrowing framework.

Following the presentation, the House dissolved into the Committee of Supply for immediate consideration of the report.

The session was presided over by the Deputy Speaker, Benjamin Kalu, who sat as chairman of the committee.

After deliberations, the report was adopted and subsequently approved by the House, thereby authorising the federal government to proceed with the new borrowing plan.

The approval comes exactly one week after Mr Tinubu wrote to the House seeking legislative endorsement for the ₦1.150 trillion domestic borrowing plan. His request was read during plenary by Deputy Speaker Kalu.

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In his correspondence, the president explained that the borrowing would be raised from the domestic debt market to cover the unfunded portion of the 2025 budget arising from an increase in expenditure projections.

He further noted that the proposal was made per the provisions of Section 44 (1) and (2) of the Fiscal Responsibility Act, which empowers the federal government to borrow for capital expenditure and human development, provided such loans are within sustainable limits.

Following reading the president’s letter, the House referred the request to the Committee on Aids, Loans and Debt Management for legislative scrutiny, culminating in Tuesday’s approval.

This development comes barely two weeks after the House gave its nod to a separate $2.3 billion external borrowing plan, also requested by Mr Tinubu.

According to President Tinubu, the foreign loan is intended to partly finance the 2025 budget deficit, refinance maturing Eurobonds, and support Nigeria’s debut sovereign Sukuk issuance on the international capital market.