President Bola Ahmed Tinubu has sought the approval of the National Assembly to raise a fresh ₦1.15 trillion domestic loan to finance part of the Federal Government’s 2025 budget deficit.
The request, contained in a letter addressed to Senate President Godswill Akpabio, was read during Tuesday’s plenary session in Abuja. The President explained that the borrowing would form part of the government’s approved domestic debt plan for the 2025 fiscal year.
According to the letter, proceeds from the loan will be channelled toward key infrastructure projects and priority sectors, including power, transport, works, and social investment programmes.
The new borrowing, which will be sourced from the domestic capital market, is intended to bridge the funding gap in the ₦28.7 trillion 2025 national budget.
Government data shows that Nigeria’s debt stock continues to rise, with the Debt Management Office (DMO) estimating total public debt at ₦97.3 trillion as of mid-2025. The new facility, however, is part of the administration’s strategy to rely more on local borrowing rather than external loans to reduce foreign exchange risks.
Economic analysts have expressed mixed reactions to the fresh loan request, warning that while domestic borrowing reduces exposure to currency volatility, it could further tighten liquidity in the financial system and raise interest rates.
The National Assembly’s committees on finance and public accounts are expected to review the proposal before final approval is granted.
Written By:Subair Damilare Adebayo
