President Bola Tinubu has asked the National Assembly to approve a new ₦1.15 trillion loan to support the 2025 budget. His letter to lawmakers, read by Senate President Godswill Akpabio during Tuesday’s plenary, outlined the purpose of the request.
Tinubu said the domestic loan would cover part of the budget deficit and ensure the full implementation of key government projects. He explained that borrowing locally would reduce pressure on the foreign exchange market and speed up project delivery.
Senate Refers Loan Request for Review
After reading the letter, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debt. The committee will study it and submit a report within one week.
Nigeria’s public debt may exceed ₦180 trillion by the end of 2025. A recent report from the Debt Management Office (DMO) shows the country’s debt service-to-revenue ratio rose to 131% in early 2025. Economists have warned that this trend threatens fiscal stability.
Experts Call for Transparency and Accountability
Financial analysts have urged the federal government to spend the borrowed funds transparently. They stressed that proper accountability is vital for public trust. This request follows earlier loans approved in 2024 to fund economic recovery projects. You can also read a related piece on Nigeria’s Rising Debt Profile for more context.
