President Bola Tinubu has asked the National Assembly to approve a fresh ₦1.15 trillion domestic loan to finance part of the 2025 budget deficit.
The request was contained in a letter from Tinubu read by Senate President Godswill Akpabio during Tuesday’s plenary.
Tinubu said the proposed borrowing is aimed at bridging fiscal gaps and sustaining the implementation of key programmes and projects under the 2025 national budget.
“This request is made pursuant to Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order, which require National Assembly approval for all new borrowings and appropriation of proceeds,” the president wrote.
Following the reading, Akpabio referred the request to the Senate Committee on Local and Foreign Debt for legislative consideration, directing the panel to report back within one week.
The fresh borrowing request comes just days after the Senate approved Tinubu’s $2.847 billion external borrowing plan, including a $500 million debut Sovereign Sukuk, to finance the 2025 budget and refinance maturing Eurobonds.
That approval followed the submission of a report by the Senate Committee on Local and Foreign Debt, chaired by Senator Wamakko Aliyu (APC/Sokoto North).
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Under that plan, $2.347 billion would be sourced from the international capital market, while $500 million would come from Sukuk bonds targeted at infrastructure projects nationwide.
In May 2025, Tinubu had also sought parliamentary approval for a $21.5 billion external loan to fund critical infrastructure and social sector projects in health, education, and water supply.
In addition to the latest ₦1.15 trillion loan request, Tinubu also asked the National Assembly to authorise a ₦758 billion domestic bond issuance to settle outstanding pension liabilities under the contributory pension scheme.
The bond, according to him, would help clear arrears and reaffirm his administration’s commitment to retired public workers.
Nigeria’s public debt has continued to rise, reaching ₦152.40 trillion as of June 30, 2025, according to data from the Debt Management Office (DMO).
The figure represents a ₦3.01 trillion increase from ₦149.39 trillion recorded in March.
In dollar terms, total debt rose from $97.24 billion to $99.66 billion within the same period, underscoring the federal government’s growing reliance on both domestic and external borrowing to plug fiscal shortfalls.
The DMO report also showed that external debt climbed to $46.98 billion (₦71.85 trillion) in June from $45.98 billion (₦70.63 trillion) three months earlier.
