Again, Tinubu Seeks Senate Approval For N1.15trn Loan
President Bola Tinubu has requested the approval of the Senate for a fresh domestic borrowing of ₦1.15trillion to finance the deficit component of the 2025 national budget.
The President’s request was conveyed in an official letter read during Tuesday’s plenary session by the Senate President, Godswill Akpabio.
In the correspondence, Tinubu explained that the proposed loan was necessary to bridge the funding gap in the 2025 fiscal plan and ensure the smooth execution of critical government programmes and projects.
According to the letter, the administration intends to source the loan from the domestic debt market.
After the letter was read, Senate President Akpabio referred the request to the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wammako (APC, Sokoto North).
The committee was directed to review the proposal and present its report within one week for further legislative consideration.
Naija News House earlier reported that the World Bank has said it has fixed December 16 as a tentative approval date for a fresh $1bn Development Policy Financing loan to the country under a new initiative tagged “Nigeria Actions for Investment and Jobs Acceleration (P512892).”
According to a project document published by the bank on October 27, the new facility comprises a $500m International Development Association credit and a $500m International Bank for Reconstruction and Development loan.
The facility, which falls under the bank’s Macroeconomics, Trade and Investment practice area for the Western and Central Africa region, is designed to strengthen ongoing economic reforms, promote job creation, and accelerate private investment.
The proposed loan is part of the bank’s broader support package aimed at consolidating the country’s post-reform stability and driving inclusive growth across key sectors of the economy.
The funding is designed to consolidate Nigeria’s ongoing macroeconomic reforms and support a decisive shift from economic stabilisation to inclusive growth.
It will be implemented through the Federal Ministry of Finance, with the World Bank confirming that the loan preparation process has been authorised to proceed.
The proposed Development Policy Financing supports Nigeria’s pivot from stabilisation to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500m IDA credit and US$500m IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
Since 2023, the President Bola Tinubu-led government said it embarked on many economic reforms, including the removal of the petrol subsidy, unification of exchange rates, and an end to central bank deficit financing.
According to the government, the measures, championed under Tinubu’s Renewed Hope Agenda, have helped stabilise the economy, narrow the fiscal deficit, and restore investor confidence.
But despite the improvements, growth remains sluggish, with more than 130 million Nigerians still living in poverty.
The World Bank report noted that while macroeconomic stability has returned, “Nigeria’s economy has yet to shift decisively into a higher and inclusive growth path,” underscoring the urgency of new investment to spur productivity, diversify exports, and create jobs.
