The Senate on Wednesday approved President Bola Tinubu’s request to borrow N1.15 trillion from the domestic market to cover the unfunded portion of the 2025 budget deficit, raising concerns over Nigeria’s mounting debt.
The country's debt profile reached a record high of N152.39 trillion (approx. $99.68 billion) as of June 2025, driven by fresh borrowing and currency depreciation.
The approval followed the adoption of the report from the Senate Committee on Local and Foreign Debt during plenary. According to the committee, the 2025 Appropriation Act sets total government spending at N59.99 trillion, up N5.25 trillion from the N54.74 trillion initially proposed by the Executive. This created a total budget deficit of N14.10 trillion, of which N12.95 trillion had already been approved for borrowing.
The newly approved N1.15 trillion loan is intended to bridge the remaining funding gap, enabling full implementation of government programs and projects under the 2025 fiscal plan.
Senator Abdul Ningi (Bauchi Central) also moved a motion directing the Senate Committee on Appropriations to intensify oversight, ensuring that the borrowed funds are used strictly for their intended purposes.
While the Tinubu administration maintains that the borrowing is necessary to sustain development projects, analysts warn that Nigeria’s debt profile is rapidly approaching a critical level.
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