By Haruna Salami
The Senate has approved President Bola Tinubu’s fresh request to source N1.15 trillion loan in the domestic debt market to fund the deficit in 2025 budget at its plenary on Wednesday.
The Senate made the approval following the presentation and consideration of the report of the Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko (APC Sokoto North).
Presenting the report, Vice Chairman of the committee, Senator Haruna Manu (PDP Taraba Central), who represented Senator Wamakko, recommended the Senate’s approval for the borrowing programme to fund the 2025 budget deficit, which now has a gap of N14.10 trillion following the increase in budget size.
The report noted that the 2025 Appropriation Act provided for a total expenditure of N59.99trn, representing an increase of N5.25trn over the N54.74 trillion initially proposed by the executive arm.
Out of the N14.10 trillion deficit gap, N12.95 trillion had already been approved for borrowing, leaving an unfunded deficit of approximately N1.15 trillion.
President Tinubu’s letter requesting for a fresh N1.15 trillion borrowing from the domestic debt market was read in the Senate during plenary on November 4.
The letter reads: “I write to kindly request the approval of the National Assembly to establish a N1,150,000,000.00 borrowing program 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, Subsection 1 to 2 of the Fiscal Responsibility Act, FRA, of 2007, which requires the approval of the National Assembly for all new borrowings by the Federal Government of Nigeria.
“The distinguished President of the Senate may wish to note that the National Assembly passed a budget of N54.9 trillion, an increase of N5.25 trillion from the N49.74 trillion budget proposal by the Executive.
This increase created a budget deficit of N14 trillion. However, the proposed borrowing approved in the budget was N12.95 trillion, which occasioned an unfunded deficit of N1.1 trillion. It is therefore, necessary to increase the domestic borrowing limit in the 2025 budget by N1.147 trillion to close this gap.
“Based on the foregoing, I wish to request the approval of the Senate for the establishment of a N1,150,000,000 borrowing program in the domestic debt market to close the unfunded 2025 budget deficit gap. A specimen of the approval required for this purpose is attached as an extra tool.”
The President of the Senate, Senator Godswill Akpabio, who read the letter, thereafter referred it to Senator Aliyu Wammakko- led Committee on Local and Foreign Debt, to report back within one week for further legislative action.
In a related development, a motion by Senator Abdul Ningi was adopted, directing the Senate Committee on Appropriations to intensify its oversight to ensure that the borrowed funds are properly implemented in the 2025 fiscal year and used strictly for their intended purposes.
