The Senate on Wednesday approved President Bola Tinubu’s request for a N1.15 trillion domestic loan to finance the deficit in the 2025 budget.
The approval followed the adoption of the report of the Senate Committee on Local and Foreign Debts, presented by Sen. Manu Haruna (APC-Taraba).
Haruna explained that the 2025 budget increased from N54.74 trillion to N59.99 trillion, creating a total deficit of N14.1 trillion. With N12.95 trillion already approved for borrowing, an unfunded gap of N1.147 trillion remained, necessitating the domestic loan.
Senators emphasised the need for strict oversight on the borrowing. Sen. Abdul Ningi (APC-Bauchi) urged the Committee on Appropriation to liaise with the Debt Management Office and Budget Office to monitor utilisation, compliance, and quarterly reporting.
Sen. Adeola Solomon (APC-Ogun) described the committee’s report as “beautiful” and called for swift sourcing of funds to ensure uninterrupted implementation of the capital components of the budget.
The Senate mandated the Ministry of Finance and Debt Management Office to execute the borrowing strictly within fiscal parameters, ensuring transparency, sustainability, and favourable terms. It also directed committees to oversee utilisation, monitor compliance, and report quarterly on repayment plans.
Deputy Senate President Barau Jibrin (APC-Kano), who presided over plenary, commended the committee for its diligence.
“The report is precise, direct, and very clear. On behalf of the Senate, I commend the committee and thank its members for their diligent work in a very short time,” Jibrin said.
