Tinubu Writes Senate, Requests Approval To Borrow N1.15trn From Nigerians, Others, Gives Reasons
- President Bola Tinubu has requested Senate approval to borrow N1.15 trillion from the domestic debt market
- The loan, he said, will be used to fund the 2025 budget deficit as several agencies have reported delays in fund release
- Nigeria’s total public debt has surged to N152.39 trillion as of June 2025, a rise from N87.4 trillion in June 2023
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
President Bola Tinubu has written to the Nigerian Senate for approval to borrow a fresh N1.15 trillion from the domestic debt market to finance the deficit in the 2025 budget.
The request was contained in a letter read on Tuesday, November 4 by Senate President Godswill Akpabio during plenary.
Source: Facebook
Domestic debt is dominated by the Federal Government of Nigeria (FGN) bonds and other sovereign instruments.
Nigerian citizens can participate in the domestic debt market by buying government bonds, treasury bills.
Why does Tinubu want to borrow N1.15 trillion?
According to the president, the proposed borrowing is intended to bridge the funding gap and ensure full implementation of government programmes and projects outlined in the 2025 fiscal plan.
He said that the facility would be sourced from the domestic debt market and justified the request under Section 44 (1) and (2) of the Fiscal Responsibility Act.
Following the announcement, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wammako (APC, Sokoto North), with instructions to report back within one week for further legislative action.
This request comes just six days after the National Assembly approved a $2.3 billion external loan, also incorporated into the 2025 budget.
The external borrowing is expected to be sourced through Eurobond issuance, loan syndications, bridge-finance facilities arranged by book-runners, or direct borrowing from international financial institutions, Vanguard reports.
Just four months ago, President Tinubu obtained approval for $21.5 million and ¥15 billion in loans, alongside a €65 million grant, as part of the federal government’s proposed 2025–2026 external borrowing plan.
Also, the World Bank is expected to decide on a $1 billion loan request in December 2025.
Source: Twitter
Nigeria's rising debt burden
These successive loans have contributed to a steady rise in Nigeria’s public debt.
According to the Debt Management Office (DMO), Nigeria’s total public debt has surged to N152.39 trillion as of June 2025, a rise from N87.4 trillion in June 2023, around the time President Bola Tinubu assumed office.
The increase means each Nigerian now carries a debt share of about N662,600, nearly doubling the per-capita burden from 2023.
Despite fiscal pressures, the Tinubu administration maintains that borrowing is necessary for development financing, particularly as domestic funding sources remain constrained.
FIRS boss explains why Tinubu will keep borrowing
Earlier, Legit.ng reported that Zacch Adedeji, the executive chairman of the Federal Inland Revenue Service (FIRS), has said that the federal government will continue its borrowing plans despite a sharp surge in revenue.
He also mentioned that federal revenue collection jumped to N3.64 trillion in September 2025, a 411% increase from N711 billion in May 2023.
FIRS boss credited the gains to reforms that boosted non-oil receipts, expanded the tax net, and strengthened compliance.
Source: Legit.ng
