THE Senate has approved President Bola Tinubu’s request for a fresh ₦1.15 trillion in borrowing Programme in the domestic debt market to close the unfunded deficit gap created by the increase in the 2025 budget size, over and above the prior approved revenue and borrowing plans.

The borrowing from the domestic debt market would help finance the deficit in the 2025 budget.

The Senate has urged the Federal Ministry of Finance and Debts Management Office should undertake the borrowing strictly within approved fiscal parameters, ensuring that all terms, are conditions favorable, transparent, sustainable:

The approval yesterday was sequel tothe presentation and consideration of Report of the Committee on Local and Foreign Debts Borrowing Programme to Fund 2025 Budget Deficit chaired by Senator Aliyu Wamako, APC, Sokoto North.

The report was presented by the Vice Chairman, Senator Haruna Manu, PDP, Taraba Central.

In his presentation, Senator Manu said “That the Senate do Receive and Consider the Report of the Committee on Local and Foreign Debts for the approval of the Borrowing Programme to Fund 2025 Budget Deficit.”

The Senate has mandated its Committee on Local and Foreign Debt, be mandated to oversee the implementation and utilization of proceeds from the approved borrowing; receive quarterly reports from Ministry of Finance and the Debt Management Office (DMO) on status, utilization and repayment plans; monitor compliance with debt sustainability thresholds and fiscal responsibility, and report any deviations to the senate for appropriate legislative actions.

According to the Committee, one of the findings was a budget of #59.99 trillion Naira was passed in the 2025 Appropriation Act, showing an increase of #5.25trillion from the #54.74 trillion budget earlier proposed by the Executive.

It also observed that the increase created a budget deficit of #14.10 trillion Naira, the proposed borrowing approved in the budget was #12.95 trillion Naira, which occasioned an unfunded deficit of #1,147,462,863,321

Recall that President Tinubu’s letter seeking for a frewash ₦1.15 trillion borrowing from the domestic debt market to help finance the deficit in the 2025 budget was read in the Senate during plenary November 4th.

The President’s request was conveyed in a letter read by the President of the Senate, Senator Godswill Akpabio.

According to the letter, the proposed borrowing is intended to bridge the funding gap and ensure full implementation of government programs and projects under the 2025 fiscal plan.

Akpabio thereafter referred the request to the Senator Aliyu Wammako, APC, Sokoto North led Senate Committee on Local and Foreign Debt to report back within one week for further legislative action.