Nigeria’s National Assembly has authorized an additional ₦1.15 trillion ($784 million) in domestic borrowing to bridge a funding shortfall in the country’s 2025 national budget, which stands at ₦59.99 trillion. The approval came on Wednesday following a formal request from President Bola Tinubu, who sought legislative backing to close the gap between the government’s proposed deficit and the version passed by lawmakers.
The presidency had initially projected a ₦12.95 trillion budget deficit, but after adjustments by the National Assembly, the figure rose to ₦14.10 trillion, prompting the request for supplementary borrowing. The new authorization allows the government to finance the shortfall without disrupting priority spending on infrastructure, energy, security, and social programs.
Nigeria’s Finance and Coordinating Minister of the Economy, Wale Edun, welcomed the parliamentary decision, describing it as a critical step in maintaining fiscal balance while sustaining key reforms. Edun noted that the government would combine the new domestic borrowing with proceeds from external debt instruments to strengthen liquidity and support ongoing development projects.
Just last week, Nigeria successfully raised $2.35 billion through a Eurobond issuance, which attracted $10.65 billion in bids from global investors—a strong vote of confidence in the country’s economic reform agenda. The proceeds from the Eurobond will be used to finance capital projects and refinance existing debts, reducing the pressure on domestic markets.
Economic analysts say the approval highlights the government’s continued reliance on borrowing to fund its expansionary budget amid weak revenue generation and volatile oil earnings. Nigeria, Africa’s largest economy, has been implementing fiscal and monetary reforms aimed at stabilizing its currency, attracting foreign investment, and curbing inflation, which has hovered above 30% in recent months.
Parliamentary leaders urged the executive to ensure transparency and accountability in the management of the new loans. They also called for accelerated efforts to boost non-oil revenue through improved tax collection, export diversification, and industrial growth.
With this approval, Nigeria’s total domestic borrowing for 2025 is expected to rise substantially, underscoring the government’s challenge of balancing fiscal discipline with the urgent need to finance growth and social welfare programs.
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