By Rejoice Peterside, Abuja
The Senate has approved President Bola Tinubu’s request to establish a N1.15 trillion borrowing programme in the domestic debt market to fund the deficit in the 2025 budget.
The approval followed the presentation and consideration of a report by Senator Haruna Manu, representing Taraba Central and Deputy Chairman of the Senate Committee on Local and Foreign Debts, during Wednesday’s plenary.
Senator Manu, who presented the report on behalf of Senator Aliyu Wamakko, Chairman of the Committee, explained that the borrowing became necessary to cover a shortfall created after the National Assembly increased the size of the 2025 Appropriation Act.
He recalled that the initial proposal from the executive pegged the 2025 budget at N54.74 trillion, but lawmakers raised it to N59.99 trillion an upward adjustment of N5.25 trillion.
According to Manu, “The increase created a total budget deficit of N14.10 trillion. The proposed borrowing approved in the budget was N12.95 trillion, which left an unfunded deficit of N1.1 trillion. It is therefore necessary to increase the domestic borrowing limit to close this gap.”
Presenting the committee’s recommendations, the lawmaker urged the Senate to approve the President’s request to establish a N1.15 trillion borrowing plan to bridge the deficit.
He further disclosed that the committee recommended that the borrowing be undertaken strictly within the approved fiscal parameters and under the supervision of the Federal Ministry of Finance and the Debt Management Office (DMO), ensuring that all terms remain “favourable, transparent, and sustainable.”
In addition, the committee proposed that the Senate Committee on Local and Foreign Debts be mandated to oversee the implementation and utilisation of the borrowed funds. It also recommended that the Ministry of Finance and the DMO submit quarterly reports to the National Assembly on the status, utilisation, and repayment plans of the loan.
Senator Manu emphasised the importance of monitoring compliance with debt sustainability thresholds and the provisions of the Fiscal Responsibility Act to ensure that the nation’s debt profile remains within safe limits.
During deliberations, Senator Abdul Ningi, representing Bauchi Central, moved an additional motion mandating the Committee on Appropriations to ensure that the borrowed funds are utilised strictly for approved purposes and in full compliance with the borrowing conditions.
Also contributing to the debate, Senator Adeola Solomon, representing Ogun West, said the borrowing was crucial to sustain government operations amid fiscal shortfalls.
“We have shortfalls from the 2025 budget, and we need borrowings,” Senator Solomon said. “There is a need for us to come up with a plan on how the money will be sourced. This will be sourced locally, and I call on my colleagues to support this request in its entirety.”
Deputy Senate President Barau Jibrin commended the Committee for what he described as a “precise and well-delivered” report, noting the diligence displayed despite the short timeframe.
With the Senate’s approval, the Federal Government is now authorised to proceed with the N1.15 trillion domestic borrowing plan to bridge the 2025 budget deficit and sustain critical government programmes.
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