The National Assembly has approved President Bola Tinubu’s request to raise N1.15 trillion from the domestic debt market to cover the unfunded portion of the 2025 budget deficit
The Senate and House of Representatives on Wednesday approved President Bola Tinubu’s request to borrow N1.150 trillion to finance the budget deficit.
The deficit was created by an increase in the budget size beyond the earlier approved revenue and borrowing plans.
This followed the consideration and approval of the report of the House Committee on Aids, Loans and Debts Management at plenary.
While presenting the report the committee chairman, Rep. Abubakar Nalaraba (APC, Nasarawa), prayed the House in the Committee of Supply to consider the request for a total sum N1.150 trillion, being the borrowing plan programme in the domestic debt market to close the unfunded 2025 budget deficit.
He also asked the House to approve “the sum of N1.150 trillion, borrowing programme in the domestic debt market to close the unfunded deficit gap created by the increase in the budget size, over and above the prior approved revenue and borrowing plans.”
Parliament Reports recalls that President Tinubu made the request in a letter addressed to Speaker Abbas Tajudeen and read at plenary on Wednesday last week by Deputy Speaker Benjamin Kalu, who presided over the sitting.
The letter read: “I write to kindly request for the approval of the National Assembly (NASS) to establish a One Trillion, One Hundred and Fifty Billion Naira (N1.15.00 trillion) borrowing Programme in the domestic debt market to close the unfunded deficit gap created by the increase in the budget size, over and above the prior approved revenue and borrowing plans.
“This request is pursuant to the provisions of Section 44(1-2) of the Fiscal Responsibility Act (FRA), 2007, which requires the approval of the NASS for all New Borrowings by the Federal Government of Nigeria (FGN).
“The Right Honourable Speaker of the House of Representatives may wish to note that National Assembly passed a budget of N59.99 Trillion, an increase of N5 25 Trillion from the 49.74 Trillion budget proposed by the Executive. This increase created a budget deficit of N14.10 Trillion.
“However, the proposed borrowing approved in the budget was N12.95 Trillion, which occasioned an unfunded deficit of N1,147,462,863.321.39. It is, therefore, necessary to increase the domestic borrowing limit in the 2025 budget by N1,147,462,863,321.39 to close this gap.
“Based on the foregoing. I wish to request for the approval of the House of Representatives for the establishment of a One Trillion, One Hundred and Fifty Billion Naira (N1.15.00 trillion) borrowing Programme in the domestic debt market to close the unfunded 2025 budget deficit gap.
“While I look forward to the timely approval of the House of Representatives, please accept, Rt. Honourable Speaker, the assurances of my consideration personal regards.”
