President Bola Tinubu has formally requested Senate approval for a ₦1.15 trillion domestic loan to address Nigeria’s 2025 budget deficit, prompting a week-long review by the Senate Committee on Local and Foreign Debt.

The request comes amid growing scrutiny of Nigeria’s rising debt profile, which reached ₦97 trillion by mid-2025, and concerns over the sustainability of continued borrowing.

Senate President Godswill Akpabio read the president’s letter during Tuesday’s plenary, emphasizing the loan’s role in financing critical government projects under the 2025 fiscal plan. The committee, chaired by Senator Aliyu Wamakko Magatakarda (APC, Sokoto North), was tasked with ensuring the proposal aligns with fiscal responsibility and national priorities.

This request follows the Senate’s October 31 approval of a $2.847 billion external loan package, which included $500 million in Sovereign Sukuk for infrastructure development and Eurobond refinancing. Wamakko defended the domestic borrowing plan as “essential for stability,” while Finance Committee Chairman Senator Sani Musa (APC, Niger East) described it as consistent with the 2025 Appropriation Act’s deficit financing provisions.

Senator Adetokunbo Abiru (APC, Lagos East), chair of the Banking Committee, clarified that the loan would not inflate Nigeria’s debt but rather fulfill previously approved obligations. Interior Committee Chairman Senator Adams Oshiomhole (APC, Edo North) added that structured loans could help combat unemployment and infrastructure decay.

Despite these assurances, critics and debt watchdogs remain wary. With inflation at 34% and oil revenues under pressure, many argue that Nigeria’s borrowing trajectory could strain public finances and limit future fiscal flexibility.