Presenting the report, Committee Chairman Abubakar Nalaraba (APC–Nasarawa) explained that the borrowing would be sourced from the domestic debt market to close the unfunded deficit caused by the recent increase in the national budget size beyond previously approved revenue and borrowing projections.
President Tinubu had earlier written to the National Assembly through the Speaker, Tajudeen Abbas, requesting approval for the loan. In the letter, read by Deputy Speaker Benjamin Kalu, Tinubu stated that the borrowing was necessary to ensure fiscal balance and compliance with the Fiscal Responsibility Act (FRA) 2007.
The President noted that while the National Assembly had passed a ₦59.99 trillion budget—₦5.25 trillion higher than the ₦54.74 trillion initially proposed—the borrowing provision remained ₦12.95 trillion, leaving a shortfall of about ₦1.15 trillion.
Quoting Sections 44(1) and (2) of the FRA, Tinubu emphasized that all new borrowings by the Federal Government must receive legislative approval. Following deliberations, the House approved the request, authorizing the Federal Government to raise the funds from the domestic debt market.
This approval comes amid growing concerns among lawmakers over the slow implementation of the capital components of the 2025 budget. On Tuesday, the House failed to hold plenary as members expressed dissatisfaction with the pace of budget execution.
