By Ogechi Anita Agu
ABUJA (PRECISE POST) – 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 2025 budget deficit.
The approval followed the presentation of a report by Senator Haruna Manu, senator representing Taraba central and deputy chairman of the committee on local and foreign debts, during plenary on Wednesday, 12th, November.
Senator Manu, who stood in for Senator Aliyu Wamakko, chairman of the committee, said the borrowing was necessary to close a N1.1 trillion unfunded deficit created, after the national assembly raised the budget size.
He noted that the 2025 Appropriation Act pegged the budget at N59.99 trillion — an increase of N5.25 trillion from the N54.74 trillion initially proposed by the executive.
“This increase, he said created a budget deficit of N14.10 trillion. The proposed borrowing approved in the budget was N12.95 trillion, which occasioned an unfunded deficit of N1.1 trillion. It is therefore necessary to increase the domestic borrowing limit to close the gap.”
Presenting the committee’s recommendations, Manu urged the senate to approve Tinubu’s request to establish a N1.15 trillion borrowing plan to address the shortfall.
He said the committee also recommended that the federal ministry of finance and the Debt Management Office (DMO) undertake the borrowing strictly within approved fiscal parameters to ensure that all terms remain “favourable, transparent, and sustainable.”
The committee further proposed that the senate’s committee on local and foreign debts be mandated to oversee the implementation and utilisation of the loan proceeds.
It also called for quarterly reports from the ministry of finance and DMO on the status, utilisation, and repayment plans, and to monitor compliance with debt sustainability thresholds and fiscal responsibility.
Senator Abdul Ningi, senator representing Bauchi central, moved an additional prayer mandating the committee on appropriation to ensure that the borrowed funds are used strictly for approved purposes and adhere to the compliance to the borrowing.
Senator Adeola Solomon, senator representing Ogun west, said the borrowing was necessary to sustain government operations amid shortfalls in the 2025 budget.
“We have shortfalls from the 2025 budget, and we need borrowings,” 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 bill in its entirety.”
Barau Jibrin, deputy senate president, commended the committee for what he described as a “precise and well-delivered” report, despite the short timing.
