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The Nigerian Senate has granted approval for President Bola Tinubu's request to raise N1.15 trillion from the domestic debt market to address the unfunded portion of the 2025 budget deficit.
This decision followed the adoption of a report by the Senate Committee on Local and Foreign Debt during the plenary session on Wednesday.
The committee indicated that the 2025 Appropriation Act allocates a total expenditure of N59.99 trillion, which is an increase of N5.25 trillion from the N54.74 trillion initially proposed by the Executive.
This expansion has resulted in a total budget deficit of N14.10 trillion. Of this amount, N12.95 trillion has already been approved for borrowing, leaving an unfunded deficit of approximately N1.15 trillion (N1,147,462,863,321).
In a related matter, a motion introduced by Senator Abdul Ningi was adopted, mandating the Senate Committee on Appropriations to enhance its oversight to guarantee that the borrowed funds are effectively utilized in the 2025 fiscal year and are strictly applied for their intended purposes.
It is worth noting that President Tinubu had on November 4th requested the National Assembly's approval for an additional N1.15 trillion borrowing from the domestic debt market to assist in financing the deficit in the 2025 budget.
The President's request was communicated through a letter. According to the letter, the proposed borrowing aims to close the funding gap and ensure the comprehensive execution of government programs and projects outlined in the 2025 fiscal plan.
Frequently Asked Questions
What is the purpose of the N1.15 trillion borrowing?
The N1.15 trillion borrowing is intended to cover the unfunded portion of the 2025 budget deficit, ensuring the effective implementation of government programs and projects.
How much is the total budget deficit for 2025?
The total budget deficit for 2025 is N14.10 trillion.
What oversight measures are being put in place?
The Senate Committee on Appropriations has been directed to intensify its oversight to ensure that the borrowed funds are properly implemented and used for their intended purposes.
