President Bola Ahmed Tinubu has requested approval from Nigeria’s National Assembly to borrow an additional ₦1.15 trillion ($740 million) to bridge a budget deficit for the 2025 fiscal year, citing revenue shortfalls and rising expenditure needs.
In a letter read to lawmakers on Friday, Tinubu explained that the new borrowing is aimed at maintaining fiscal stability and sustaining key infrastructure and social programs. The move, as reported by Bloomberg, comes amid higher-than-expected spending pressures driven by fuel subsidy arrears and public sector wage adjustments.
According to Reuters, Nigeria’s debt stock stood at ₦121 trillion ($78 billion) as of mid-2025, reflecting the government’s heavy reliance on borrowing to finance its budget. Economists have warned that the move could push the debt-service-to-revenue ratio beyond sustainable limits unless new revenue streams are developed.
Lawmakers are expected to debate the request next week. A senior official from the Ministry of Finance told Business Day that the borrowing will be sourced domestically to minimize exposure to foreign exchange risks.
Despite concerns, the Tinubu administration maintains that the borrowing plan aligns with its fiscal consolidation strategy and will help stimulate growth through targeted investments in transport, energy, and agriculture.
