President Bola Tinubu has written to the Senate seeking approval for a fresh ₦1.15 trillion borrowing from the domestic debt market to finance the deficit in the 2025 budget.

The request was contained in a letter read on Tuesday by Senate President Godswill Akpabio during plenary.

According to the President, the proposed borrowing is aimed at bridging the funding gap and ensuring full implementation of government programmes and projects outlined in the 2025 fiscal plan.

Following the announcement, Akpabio referred the request to the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wammako (APC, Sokoto North), with a directive to report back within one week for further legislative action.

Tinubu explained that the borrowing is aimed at bridging the fiscal shortfall and ensuring the smooth implementation of key government programmes and projects outlined in the 2025 budget.

“This request is under the provisions of Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order, which requires National Assembly approval for all new borrowings and appropriation of the proceeds,” the letter added.

The development comes barely five days after the Senate approved another of Tinubu’s requests, a $2.847 billion external borrowing plan, including a $500 million debut Sovereign Sukuk, aimed at financing the 2025 budget deficit and refinancing Nigeria’s maturing Eurobonds.

The earlier approval followed the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North).

According to the committee, $2.347 billion would be sourced from the international capital market, while the remaining $500 million would come from Sukuk bonds to fund key infrastructure projects nationwide.

This also follows a borrowing request in May 2025, when the President sought the Senate’s approval for a $21.5 billion external loan aimed at financing critical projects across various sectors of the economy, particularly infrastructure, health, education, and water supply.

According to the committee, $2.347 billion would be sourced from the international capital market, while the remaining $500 million would come from Sukuk bonds to fund key infrastructure projects nationwide.

This also follows a borrowing request in May 2025, when the President sought the Senate’s approval for a $21.5 billion external loan aimed at financing critical projects across various sectors of the economy, particularly infrastructure, health, education, and water supply.

In dollar terms, the total debt rose from $97.24 billion to $99.66 billion, reflecting a 2.49 per cent increase within three months.

The latest figures underscore the Federal Government’s growing dependence on both domestic and external borrowing to finance fiscal shortfalls, even as ongoing revenue reforms and foreign exchange liberalisation continue to reshape Nigeria’s economic outlook.

DMO data showed that Nigeria’s external debt rose to $46.98 billion (₦71.85 trillion) in June, up from $45.98 billion (₦70.63 trillion) in March.