Senate yesterday approved President Bola Tinubu’s request to raise an additional N1.15 trillion through domestic borrowing to plug the funding shortfall in the 2025 Appropriation Act.
The approval followed the consideration and adoption of the report of the Senate Committee on Local and Foreign Debts, which reviewed the financial implications of the increased budget size and identified a resultant deficit.
Equally, House of Representatives approved the president’s new borrowing plan of N1.15 trillion.
That was as Senate took bold steps towards strengthening Nigeria’s financial institutions through sweeping reforms that included a proposed raise in the capital base of Nigerian Export-Import Bank (NEXIM) to N1 trillion, establishment of an Export Development Trust Fund, and creation of a special tribunal to resolve insurance disputes.
Presenting the report, Deputy Chairman of Senate Committee on Local and Foreign Debts, Senator Manu Haruna, explained that the National Assembly had passed a N59.99 trillion budget, exceeding the executive’s original proposal of N54.74 trillion.
The committee recommended that the Federal Ministry of Finance and the Debt Management Office (DMO) should undertake the borrowing strictly within approved fiscal parameters and in line with the Fiscal Responsibility Act.
