House Approves Tinubu’s ₦1.15 Trillion New Borrowing Plan
House of Representatives Approves Tinubu’s ₦1.15 Trillion Borrowing Plan, Fresh External Loans to Fund 2025 Budget
Nigeria’s House of Representatives has approved President Bola Tinubu’s request to borrow ₦1.15 trillion from the domestic market as part of efforts to finance the 2025 national budget. The approval also includes provisions for new external loans and the refinancing of existing debt obligations.
The resolution was reached on Wednesday following the adoption of a report presented by the House Committee on Aids, Loans, and Debt Management, chaired by Honourable Abubakar Hassan Nalaraba. The session was presided over by the Deputy Speaker, Honourable Benjamin Kalu.
According to Nalaraba, the new borrowing will form part of the Domestic Debt Market Programme, a key component of the administration’s fiscal strategy for 2025. He explained that the funds would be used to close the existing budget deficit and support critical infrastructure and development projects across various sectors.
He also noted that the 2025 budget size had been reviewed upward to ₦59.99 trillion, representing an increase of ₦5.25 trillion from the original proposal submitted by the Executive arm of government. The committee stated that the expansion became necessary to accommodate additional spending requirements and to ensure adequate funding for national priorities.
In addition to the domestic borrowing, the House approved the refinancing of a $1.12 billion Eurobond due to mature in November 2025. Lawmakers explained that this refinancing plan is intended to prevent default and ease debt service pressure on the economy.
The House also granted approval for the federal government to raise $2.35 billion in external capital, which may be sourced through Eurobonds, syndicated loans, bridge financing, or direct borrowing from international financial institutions. These funds, according to the committee, will be utilized to support critical sectors and sustain economic growth while ensuring Nigeria meets its development goals under the 2025 fiscal framework.
The committee emphasized that all borrowing activities would be conducted in compliance with the Fiscal Responsibility Act and the nation’s Medium-Term Debt Management Strategy, to ensure that public debt remains sustainable.
In adopting the committee’s recommendations, the House highlighted the importance of prudent debt utilization and accountability. Lawmakers urged the executive to ensure transparency in the deployment of borrowed funds and to channel them towards viable and revenue-generating projects.
They also called on the federal government to intensify efforts to boost internally generated revenue (IGR), reduce recurrent expenditure, and strengthen fiscal discipline to minimize dependence on borrowing in the long term.
Deputy Speaker Benjamin Kalu, who presided over the session, commended the committee for its thorough work and stressed the need for continued legislative oversight to ensure effective implementation of the borrowing plan.
The approvals mark another step in President Tinubu’s broader economic agenda, which aims to stabilize public finances, stimulate investment, and address infrastructure deficits while managing Nigeria’s growing debt obligations.