Reps Approve President Tinubu’s ₦1.15 Trillion Domestic Loan to Finance Unfunded Gap in 2025 Budget Deficit

The House of Representatives today, Wednesday, November 12, 2025, approved President Bola Ahmed Tinubu’s request to borrow ₦1.15 trillion from the domestic debt market, a move aimed at closing the unfunded deficit in the 2025 national budget.

The approval followed the adoption of the report presented by the House Committee on Aids, Loans and Debt Management during the day’s plenary session. This action aligns with a similar approval granted by the Senate today, ensuring the quick establishment of the necessary domestic borrowing programme.

President Tinubu had, in a letter transmitted to the National Assembly last week, explained that the borrowing was necessitated by the expansion of the 2025 Appropriation Act. The National Assembly had passed a total expenditure of ₦59.99 trillion, an increase of ₦5.25 trillion over the Executive’s initial proposal.

This significant increase resulted in a total budget deficit of ₦14.10 trillion. With the borrowing amount initially approved in the budget standing at ₦12.95 trillion, the approval of the ₦1.15 trillion domestic loan is now crucial to covering the remaining unfunded portion.

Commitment to Fiscal Responsibility

The President’s letter stressed that the request was made in compliance with Section 44 (1) & (2) of the Fiscal Responsibility Act, 2007, which mandates the National Assembly’s prior approval for all new Federal Government borrowings.

Lawmakers who spoke during the debate emphasized the urgency of the borrowing to ensure the full implementation of government programmes and projects in the 2025 fiscal year. However, they equally stressed the need for strict legislative oversight to ensure the borrowed funds are used solely for their intended purposes and do not further exacerbate the nation’s burgeoning debt service profile.

The quick passage of the loan request by both chambers of the National Assembly signals the legislature’s commitment to enabling the Executive to execute the 2025 budget, even amidst growing public scrutiny over the government’s reliance on continuous borrowing to finance development.