The National Assembly has approved President Bola Tinubu’s request to borrow $2.35 billion to finance part of Nigeria’s 2025 budget deficit.
Both chambers — the Senate and the House of Representatives — gave the approval on Wednesday after considering the report of their Committees on Local and Foreign Debts.
The loan, according to the President’s request, is part of Nigeria’s 2025 borrowing plan aimed at bridging the fiscal gap and supporting key infrastructure and social projects outlined in the budget.
Presenting the committee’s report before the Senate, the Chairman of the Committee on Local and Foreign Debts said the facility was necessary to sustain government spending and ensure the implementation of capital projects across critical sectors.
Lawmakers who supported the request argued that borrowing remained an unavoidable option for the federal government, given dwindling revenues and rising expenditure demands. However, some legislators cautioned the executive arm to ensure prudent use of the borrowed funds and transparency in project execution.
With the approval, the Federal Government is expected to source the funds from multilateral and bilateral lenders, though specific institutions were not immediately disclosed.
Nigeria’s public debt profile has been a subject of national debate, with analysts warning about the growing cost of servicing loans. The government, however, maintains that the borrowings are within sustainable limits and necessary to drive economic growth.
