Lawmakers have given the green light for President Bola Tinubu to borrow ₦1.15 trillion to finance the funding gap in the 2025 budget and support critical infrastructure projects across the country.
Recall that President Tinubu’s letter seeking fresh ₦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 on November 4.
The President’s request was conveyed in a letter read by the President of the Senate, Senator Godswill Akpabio, stating that the proposed borrowing is intended to bridge the funding gap and ensure full implementation of government programmes and projects under the 2025 fiscal plan.
Akpabio thereafter referred the request to Senator Aliyu Wammako (APC, Sokoto North), who chairs the Senate Committee on Local and Foreign Debts, and directed the panel to report back within one week for further legislative action.
In the report presented on Wednesday by the Deputy Chairman of the Committee on Local and Foreign Debts, Senator Haruna Manu, the panel 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 also urged that the Senate Committee on Local and Foreign Debts be tasked with overseeing the utilisation of the loan, with quarterly reports submitted to monitor compliance with debt sustainability and fiscal responsibility standards.
Additionally, the panel called on the Ministry of Finance and the DMO to submit quarterly reports on the status, utilisation, and repayment plans of the loan to ensure compliance with debt sustainability thresholds and fiscal responsibility guidelines.
The lawmaker representing Bauchi Central, Senator Abdul Ningi, moved an additional motion mandating the Committee on Appropriation to ensure that the borrowed funds are used strictly for approved purposes.
Wrapping up the session, Deputy Senate President Barau Jibrin commended the committee for its diligence, describing the report as “precise and well-delivered.”
“You did the job in a very short time. The report is straight to the point, and I thank you for a job well done,” Jibrin said.
