Senate Approves ₦1.15 Trillion Domestic Borrowing for 2025

Senate Approves Tinubu Loan to Close 2025 Budget Gap

Senate approves ₦1.15tn domestic borrowing to plug 2025 budget shortfall. Oversight motion adopted as Nigeria’s debt stock rises, raising fiscal sustainability questions.

Atlantic Post

November 13, 2025

2–3 minutes

2025 budget, Appropriations Committee, Debt Management Office, domestic debt, Fiscal Policy, Nigeria Economy, Public Debt Sustainability, Senate Oversight, Sovereign Borrowing, Tinubu Borrowing

The Senate on Wednesday authorised President Bola Tinubu to raise ₦1.15 trillion from the domestic debt market to plug the unfunded part of the 2025 Appropriation Act. The approval came after the adoption of a report by the Senate Committee on Local and Foreign Debt. This report explained that the budget was increased to ₦59.99 trillion, creating a gap that required fresh financing.

At face value the sum is modest compared to headline budget numbers. Yet the approval must be judged against Nigeria’s ascending debt profile.

The Debt Management Office reported that total public debt stood in the region of ₦152 trillion by mid-2025. This shows a substantive rise over recent years. It is a reminder that even small incremental borrowings add to servicing pressures. Any new domestic issuance must therefore be appraised for cost, rollover risk and crowding out of private credit.

This latest domestic tranche follows a string of sizeable approvals and market operations this year. In October the National Assembly cleared foreign borrowings totalling about $2.85 billion and a debut sovereign sukuk, part of a broader drive to diversify funding sources and refinance maturing

Eurobonds. Earlier in the year, larger external programmes had also been tabled. This underscores a fiscal strategy that relies heavily on debt markets both at home and abroad. The cumulative effect is a heavier debt service bill ahead.

Practical questions remain unanswered. The ministerial letter of 4 November said the borrowing would guarantee full implementation of government programmes and projects. But parliamentary scrutiny must move beyond ritual approval.

The Federal Government has already borrowed heavily this year. It borrowed over ₦17 trillion from domestic and foreign sources in the first ten months, according to recent reporting. The temptation to treat fresh approval as budgetary housekeeping risks weakening fiscal discipline.

The Senate’s insistence on intensified oversight is therefore welcome. Nonetheless, oversight alone is insufficient. Transparent project-level reporting and publication of borrowing terms are also needed.

Comparatively, other emerging markets deploy fresh domestic issuance with strict ringfencing. They use medium term fiscal frameworks to avoid ad hoc expansion of the debt envelope.

Nigeria’s fiscal scorecard would benefit from clearer prioritisation of capital spend versus recurrent obligations. It would also benefit from a tighter borrowing calendar. Additionally, an explicit debt sustainability plan is needed. This plan should set explicit limits on domestic market dependence.

The Senate adopted a motion by Senator Abdul Ningi. This motion directs the Appropriations Committee to intensify oversight. It is a step in the right direction.

It must now be followed by rigorous audits, swift public disclosure of all terms and a timeline for measurable outputs. Otherwise, the ₦1.15 trillion will be another entry in a rising debt ledger. It will provide little to show for it in growth or services.