President Tinubu
By Iyunade Grace
President Bola Tinubu has requested the National Assembly’s approval to borrow N1.15 trillion from the domestic debt market to fund the 2025 budget deficit. This request is contained in a letter addressed to Senate President Godswill Akpabio, where Tinubu explained that the deficit arose following an upward adjustment of the national budget by lawmakers beyond the executive’s initial revenue and borrowing projections.
The 2025 budget stands at N59.9 trillion, an increase of N5.25 trillion from the N54.65 trillion originally proposed by the executive, resulting in a total deficit of N14 trillion. Although the budget already provides for N12.95 trillion in borrowing, an unfunded shortfall of about N1.15 trillion remains, which the new borrowing request seeks to address ¹.
Tinubu cited Section 44 (1-2) of the Fiscal Responsibility Act 2007, which requires legislative approval for all new borrowings by the federal government. The Senate has referred the request to the Committee on Local and Foreign Debt for further review and legislative action, with a report expected within one week.
This borrowing request comes shortly after the National Assembly approved Tinubu’s request to borrow $2.35 billion to finance part of the 2025 budget deficit and a $500 million debut sovereign sukuk in the international capital market for infrastructure projects. Nigeria’s total public debt stock has climbed to N152.4 trillion as of June 30, 2025, reflecting an increase of N3.01 trillion or 2.01% from the previous quarter.
The proposed borrowing is part of the government’s fiscal strategy to stimulate economic growth, enhance infrastructure investment, and strengthen social programs aimed at improving citizens’ welfare. However, concerns arise about the country’s rising debt profile and future repayment capacity, with the government spending over 80% of its revenue on debt servicing
Given the current economic situation, would the proposed borrowing effectively stimulate economic growth and improve infrastructure in Nigeria, or would it exacerbate the country’s debt burden?
