By Dalena Reporters — Abuja, Nigeria — 12 November 2025
Nigeria’s financial bearings shifted again today as the National Assembly approved an additional ₦1.15 trillion (approximately US $784 million) in domestic borrowing to plug a widening gap in the 2025 budget, signaling both fiscal urgency and deeper structural challenges.
The borrowing request originated from President Bola Tinubu, who submitted the proposal to lawmakers roughly two weeks ago. The request follows a divergence between the executive’s originally proposed deficit of ₦12.95 trillion and the ₦14.10 trillion deficit figure approved last month by the legislature.
Under the 2025 fiscal plan, Nigeria’s budget stands at ₦59.99 trillion, with the gap to be financed through a mixture of domestic and external borrowings.
The need for this fresh borrowing has been attributed to shortfalls in revenue, compounded by ongoing economic reform measures and subsiding oil receipts. Analysts warn that repeated reliance on debt may deepen Nigeria’s vulnerability to external shocks, higher borrowing costs, and rising debt service burdens.
More borrowing implies immediate relief for the government’s cash-flow, but carries medium-term risks: increased debt servicing, reduced fiscal flexibility, and potential crowding out of private investment. The move may also affect Nigeria’s credit metrics and the confidence of foreign investors tracking the country’s debt trajectory.
With parliamentary approval secured, the government must now operationalise the borrowing — likely through government bonds or Treasury bills in the domestic market. Attention will turn to how the funds are deployed and how the government manages its wider borrowing strategy, including previously approved external loans. Transparency and fiscal discipline will be key to restoring investor confidence.
The decision marks yet another chapter in Nigeria’s fiscal balancing act: attempting to sustain public service delivery and stimulus ambitions while navigating constrained revenue streams and rising debt. Whether this additional borrowing becomes a bridge to recovery or a sign of deeper fiscal stress remains to be seen.
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