By Obinna Uballa
The Senate has approved President Bola Tinubu’s request to raise N1.15 trillion from the domestic debt market to finance the unfunded portion of the 2025 budget deficit, further deepening concerns over Nigeria’s surging debt profile.
Nigeria’s debt profile reached a record high of N152.39 trillion (approx. $99.68 billion) as of June 2025, driven by fresh borrowing and currency depreciation.
The approval followed the adoption of the report of the Senate Committee on Local and Foreign Debt during plenary on Wednesday.
According to the committee, the 2025 Appropriation Act provides for a total expenditure of N59.99 trillion, representing an increase of N5.25 trillion over the N54.74 trillion originally proposed by the Executive. The adjustment resulted in a total fiscal deficit of N14.10 trillion, out of which N12.95 trillion had previously been approved for borrowing. The newly authorised N1.15 trillion loan – equivalent to N1,147,462,863,321 – will close the remaining funding gap.
The committee explained that the additional borrowing would help sustain critical government programmes and ensure the effective implementation of projects captured in the 2025 fiscal plan.
However, the decision has sparked renewed debate about Nigeria’s growing debt obligations. Economists have repeatedly warned that the rising debt-servicing costs, already consuming about 70 per cent of federal revenue, could further constrain spending on infrastructure, health, and education.
In a related motion, Senator Abdul Ningi (Bauchi Central) urged the Senate Committee on Appropriations to strengthen its oversight functions to guarantee that the borrowed funds are transparently utilised and strictly applied to their approved purposes.
“The Committee on Appropriations must ensure that every kobo borrowed is used prudently,” Ningi said, emphasising the need for tighter fiscal discipline amid dwindling oil revenues and sluggish economic recovery.
