The Nation Newspaper

Tag: 2025 budget deficit

  • Senate okays ₦1.15tr domestic loan for Tinubu to fund 2025 budget deficit

    Senate okays ₦1.15tr domestic loan for Tinubu to fund 2025 budget deficit

    …lawmakers demand strict oversight, transparency in borrowing

    The Senate on Wednesday approved President Bola Tinubu’s request to raise ₦1.15 trillion through domestic borrowing to cover the funding shortfall in the 2025 Appropriation Act.

    The resolution of the red chamber followed its adoption of a report presented by the Senate Committee on Local and Foreign Debts, which highlighted a financing gap created after the National Assembly increased the budget size beyond the Executive proposal.

    Presenting the committee’s findings, Deputy Chairman Senator Manu Haruna, explained that the 2025 budget, as passed by the National Assembly, stood at ₦59.99 trillion, up from the ₦54.74 trillion earlier proposed by the Executive.

    He added that since the original borrowing plan approved by the Executive was ₦12.95 trillion, an additional ₦1.147 trillion borrowing was required to close the gap.

    “It is therefore necessary to increase the domestic borrowing limit in the 2025 budget to close this gap,” Haruna said.

    The committee recommended that the Federal Ministry of Finance and the Debt Management Office (DMO) undertake borrowing strictly within approved fiscal parameters and ensure transparency, accountability, and debt sustainability.

    It also urged the Senate Committee on Local and Foreign Debts to receive quarterly reports from the DMO, monitor compliance, and report any deviation to the Senate.

    READ ALSO; FG pays N18bn insurance to boost troops’ welfare

    Supporting the report, Chairman of the Senate Committee on Appropriations, Senator Solomon Adeola (APC – Ogun West), said the borrowing was crucial to the timely implementation of the 2025 budget, particularly capital projects, and commended the decision to source the funds locally.

    Senator Abdul Ningi (Bauchi Central) called for enhanced oversight by both the Appropriations and Debt Committees to ensure the funds are utilised strictly for the purposes approved by the National Assembly.

    The motion was seconded by Senator Mohammed Tahir Monguno (APC – Borno North), who stressed the need for transparency and adherence to debt management guidelines.

    With the Senate’s approval, the Federal Government is now authorised to raise ₦1.15 trillion from domestic sources to bridge the 2025 budget deficit and ensure the smooth execution of the nation’s fiscal plans.

  • Tinubu writes Reps, seeks N1.15tr borrowing approval to fund 2025 budget deficit

    Tinubu writes Reps, seeks N1.15tr borrowing approval to fund 2025 budget deficit

    President Bola Ahmed Tinubu has written to the House of Representatives seeking approval for a borrowing programme of ₦1.15 trillion to fund the 2025 budget deficit.

    In a letter addressed to Speaker Tajudeen Abbas dated October 31, 2025, the President explained the request became necessary to bridge the unfunded deficit arising from an increase in the total budget size by the National Assembly.

    The letter was read during plenary on Wednesday by the Deputy Speaker, Rt Hon Benjamin Okezie, who presided.

    Tinubu noted that while the National Assembly passed a ₦59.99 trillion budget, an increase of ₦5.25 trillion from the ₦54.74 trillion earlier proposed by the Executive, this adjustment created a budget deficit of ₦14.10 trillion.

    However, the borrowing plan approved in the budget amounted to ₦12.95 trillion, leaving an unfunded gap of ₦1.15 trillion.

    Read Also: Tinubu commissions 100 housing units for widows in Kaduna

    “In view of the foregoing, it is necessary to increase the domestic borrowing limit in the 2025 budget by ₦1,147,462,863,321.39 to close this gap,” the President wrote.

    The President’s request, which was made in line with Section 44 (1–2) of the Fiscal Responsibility Act, 2007, seeks the National Assembly’s approval to establish the borrowing programme in the domestic debt market.

    Tinubu expressed confidence in the lawmakers’ prompt consideration of the request, assuring them of his “highest consideration and personal regards.”

    The letter was referred to the Committee on Aids, Loans and Budget Management for further legislative action.