Writing By Bashir M; By Yusuf Zubairu
The Senate has approved President Bola Ahmed Tinubu’s request to borrow ₦1.15 trillion to close the 2025 budget deficit.
The approval followed consideration of a report from the Senate Committee on Local and Foreign Debt.
Presenting the report, Committee Chairman Senator Aliyu Magatakarda Wamako, represented by Deputy Senator Haruna Manu, explained that the 2025 budget of ₦59.99 trillion, approved by the National Assembly, reflected an increase of ₦5.25 trillion from the ₦54.74 trillion initially proposed by the executive.
He added that ₦12.95 trillion was already approved in the budget, creating an unfunded deficit of ₦1.147 trillion, which necessitated the proposed borrowing program.
The committee recommended that the Senate approve the ₦1.15 trillion domestic borrowing to close the deficit gap resulting from the increased budget size.
Senator Wamako noted that the borrowing program would increase the overall budget deficit to ₦14.10 trillion under the proposed borrowing approval act.
The committee further urged the Federal Minister of Finance and the Debt Management Office to ensure the borrowing is executed strictly within approved parameters, maintaining transparency, sustainability, and favorable terms.
The Senate mandated that the Committee on Local and Foreign Debt oversee the implementation and utilization of the borrowed funds.
Quarterly reports on the status, utilization, and repayment plans must be submitted by the Minister of Finance, with any deviations reported to the Senate for appropriate legislative action.
By Bashir M
