The Nigerian Senate has approved President Bola Tinubu’s request for a N1.15 trillion domestic loan to bridge the funding gap in the 2025 budget. This loan will cover the N1.147 trillion unfunded deficit caused by a N5.25 trillion increase in the budget, raising total expenditure to N59.99 trillion. The Senate mandated the Finance Ministry and Debt Management Office to ensure the borrowing is transparent, favorable, and sustainable.
Key Conditions:
– The Committee on Appropriations must ensure funds are used for intended purposes.
– Quarterly reports on utilization and repayment plans are required.
– The loan aligns with Tinubu’s strategy to boost economic growth and infrastructure.
Recall that the Senate also approved a $21.5 billion external borrowing plan earlier this year. Concerns about Nigeria’s rising debt (over *N152.4 trillion*) persist, but officials emphasize the reforms aim to improve fairness and investor confidence.
