2025 Budget Deficit : Reps Approve PBAT’s Request To Raise N1.15tr

The House of Representatives has approved President Bola Tinubu’s request to raise ₦1.15 trillion through the domestic debt market to finance part of the 2025 budget deficit.

The approval followed the adoption of recommendations from the House Committee on Aids, Loans and Debt Management, chaired by Abubakar Hassan Nalaraba, during plenary presided over by the Deputy Speaker, Benjamin Kalu.

Presenting the committee’s report, Nalaraba urged lawmakers to support the president’s request, explaining that the borrowing programme was necessary to close the funding gap created by an expanded budget size beyond the earlier approved revenue and borrowing projections.

President Tinubu had earlier informed the National Assembly that the 2025 Appropriation Act passed by lawmakers increased total spending to ₦59.99 trillion ₦5.25 trillion higher than the ₦49.74 trillion initially proposed by the executive.

According to his letter, the adjustment left an unfunded deficit of ₦1.15 trillion, as only ₦12.95 trillion had been approved for borrowing in the budget.

“It is therefore necessary to increase the domestic borrowing limit in the 2025 budget by ₦1.15 trillion to close this gap,” the president said.

This approval comes two weeks after the House endorsed Tinubu’s request to implement a new external borrowing plan of about ₦1.84 trillion (USD 1.23 billion) and to refinance maturing Eurobonds worth USD 1.12 billion due in November 2025.

The lawmakers also authorised the federal government to explore various international financing options, including Eurobonds, loan syndications, and sovereign Sukuk issuances of up to USD 500 million.

Oduyemi Odumade, Edited By Grace Namiji