Nigeria’s parliament on Wednesday approved an additional 1.15 trillion naira ($784 million) in domestic borrowing to help finance the 2025 budget deficit, lawmakers said.
President Bola Tinubu had requested the approval two weeks ago, citing a shortfall between the 12.95 trillion naira deficit proposed by the executive and the 14.10 trillion naira gap approved by legislators. Lawmakers said the additional borrowing would allow the government to maintain key spending programs, including infrastructure, health, and education.
Nigeria’s 2025 budget totals about 59.99 trillion naira and is set to be financed through a combination of domestic and external borrowing. Last week, the government raised $2.35 billion through a Eurobond issuance, attracting $10.65 billion in investor bids, reflecting strong international appetite for Nigerian debt.
Finance Minister Wale Edun said the additional borrowing was necessary to bridge the financing gap and implement the government’s economic reforms aimed at boosting growth and sustaining fiscal stability. Economists have warned that rising debt levels could increase pressure on public finances, but they noted that Nigeria’s strong investor interest in its bonds indicates continued confidence in the country’s economic prospects.
