In October, the national assembly had approved a separate request to borrow $2.35 billion to finance part of the 2025 budget deficit.
The upper and lower chambers also granted Tinubu’s request to issue a $500 million sovereign sukuk in the international capital market (ICM) to fund infrastructure projects and diversify Nigeria’s financing sources
The latest loan request was approved during Wednesday’s plenary.
On November 4, Tinubu requested the national assembly to authorise the borrowing, explaining that the shortfall in domestic financing arose from an expansion of the budget beyond the initially approved revenue and borrowing projections.
Tinubu said the national assembly passed the 2025 budget of N59.9 trillion, representing an increase of N5.25 trillion from the N54.74 trillion budget proposed by the executive.
The president added that the increase resulted in a budget deficit of N14 trillion.
In a letter addressed to Senate President Godswill Akpabio and Tajudeen Abbas, speaker of the house of representatives, Tinubu said it is “therefore necessary to increase the domestic borrowing limit in the 2025 budget by N1.147 trillion to close this gap”.
In a report presented by Haruna Manu, senator representing Taraba central and deputy chair of the committee on local and foreign debts, the panel recommended that the federal ministry of finance and the Debt Management Office (DMO) undertake the borrowing strictly within approved fiscal parameters to ensure that all terms remain “favourable, transparent, and sustainable”.
The committee also proposed that the committee on local and foreign debts be mandated to oversee the implementation and utilisation of the loan proceeds.
The panel called for quarterly reports from the ministry of finance and DMO on the status, utilisation, and repayment plans, and to monitor compliance within debt sustainability thresholds and fiscal responsibility.
Abdul Ningi, senator representing Bauchi central, moved an additional prayer mandating the committee on appropriation to ensure that the borrowed funds are used strictly for approved purposes.
Adeola Solomon, senator representing Ogun west, said the borrowing was necessary to sustain government operations amid shortfalls in the 2025 budget.
“We have shortfalls from the 2025 budget, and we need borrowings,” Solomon said.
“There is a need for us to come up with a plan on how the money will be sourced. This will be sourced locally, and I call on my colleagues to support this bill in its entirety.”
Barau Jibrin, deputy senate president, commended the committee for what he described as a “precise and well-delivered” report.
“You did the job in a very short time. The report is straight to the point, and I thank you for a job well done,” Jibrin said.
