Nigeria’s National Assembly on Wednesday approved an additional 1.15 trillion naira ($784 million) in domestic borrowing. President Bola Tinubu requested the extra funds two weeks ago, highlighting a gap between the executive’s 12.95 trillion naira deficit and lawmakers’ 14.10 trillion naira proposal.
The 2025 federal budget totals 59.99 trillion naira, with the shortfall planned to be financed through both external and domestic borrowing mechanisms. Last week, Nigeria raised $2.35 billion through a Eurobond issuance that attracted $10.65 billion in bids from international investors.
Finance Minister Wale Edun said the strong demand reflected global confidence in Nigeria’s economic reforms and commitment to sustainable growth. The additional borrowing aims to bridge the fiscal gap while supporting government spending across critical sectors in 2025.
Lawmakers and the executive have emphasised the importance of prudent fiscal management to prevent further strain on Nigeria’s economy. Analysts view the Eurobond success as a positive signal for investor sentiment amid ongoing efforts to stabilise public finances.