Barely five days after the Senate approved President Bola Tinubu’s $2.847 billion external borrowing plan, another loan request, this time N1.15 trillion from the domestic market, has landed before the National Assembly.
The fresh request, read on the floor of the Senate by President of the Senate, Godswill Akpabio, on Tuesday, seeks legislative approval to fund part of the deficit in the 2025 national budget.
According to the president, the new domestic borrowing is to “bridge the fiscal shortfall” and ensure “smooth implementation of key government programmes and projects” under the 2025 fiscal framework. The loan, he said, is backed by the provisions of Section 44 (1) and (2) of the Fiscal
Responsibility Act, 2007, and Section 1(7) of the Executive Order requiring National Assembly consent for all fresh borrowing.
Akpabio subsequently referred the request to the Senate Committee on Local and Foreign Debt for further legislative work, directing the committee to report back within one week.
The new N1.15 trillion domestic loan comes just days after the Senate cleared Tinubu’s $2.847 billion external borrowing request, which included a $500 million debut Sovereign Sukuk.
That approval was meant to finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
According to the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North), $2.347 billion of the sum would be sourced from the international capital market, while $500 million would come through Sukuk bonds to fund key infrastructure projects across the country.
The latest borrowing plan also follows an earlier Senate approval in May 2025 for another $21.5 billion loan package, which the President said was targeted at critical sectors including infrastructure, education, health, and water supply.
In the same period, the president sought legislative consent for a N758 billion domestic bond to clear outstanding pension liabilities under the Contributory Pension Scheme.
Nigeria’s debt profile has continued to expand despite repeated assurances of prudence from the federal government. According to the Debt Management
Office (DMO), the country’s external debt rose to $46.98 billion (N71.85 trillion) as of June 2025, up from $45.98 billion (N70.63 trillion) recorded in March.
In its October report, the DMO further disclosed that total public debt, combining both domestic and external components, surged to N152.40 trillion as of June 30, 2025. The figure represents an increase of N3.01 trillion or about 2.01 percent from N149.39 trillion in March. The government, however, insists its borrowing remains within sustainable limits.
Officials of the Ministry of Finance argue that the funds are tied to productive infrastructure and strategic investments capable of stimulating growth and job creation. Economists, on the other hand, warn that the rising debt burden could stifle fiscal flexibility and increase debt servicing pressure in an already fragile economy.
Meanwhile, in a dramatic twist to the country’s fiscal troubles, federal contractors on Tuesday stormed the National Assembly complex in Abuja, barricading the main entrance in protest over unpaid debts.
The aggrieved contractors, who said they were owed for projects executed under the 2024 and 2025 budgets, vowed to occupy the complex for seven days until their demands were met. The siege disrupted legislative activities, forcing the House of Representatives to suspend plenary sessions for one week.
In a motion of urgent public importance moved by Rep. Kabiru Maipalace (Gusau/Tsafe Federal Constituency, Zamfara State), the House resolved to halt sittings until the executive arm fulfilled its promise to pay the contractors.
House Minority Leader, Kingsley Chinda, lamented that despite several meetings with the Ministers of Finance and Budget, the situation remained unresolved.
“Contractors, our brothers and sisters are at the gate protesting that they have not been paid for jobs executed since 2024. We have met with the Executive, including the Ministers of Finance and Budget, yet promises made have not been fulfilled,” Chinda said.
He recalled that President Tinubu had personally instructed both ministers to effect immediate payment of outstanding debts but expressed dismay that the directive had remained unimplemented weeks later. The motion further stressed that the non-payment of contractors had worsened economic hardship, increased poverty, and heightened public tension.
The House consequently issued a seven-day ultimatum to the Minister of Finance, Minister of Budget and Economic Planning, and the Accountant General of the Federation to clear all outstanding bills owed to local contractors and fully commence implementation of the 2025 budget.
Deputy Speaker Benjamin Kalu, who presided over Tuesday’s session, sought clarification on the matter.
Responding, Chairman of the Rules and Business Committee, Rep. Francis Waive, said it was sensible to adjourn plenary since the protesters had vowed to keep the National Assembly inaccessible for a week.
“During this one week, the contractors have vowed to continue their protest and make this place inaccessible. It is sensible for us to keep away and give the Executive the opportunity to do the needful,” Waive said.
The House unanimously adopted the motion, stepping down all items on Tuesday’s Order Paper and adjourning plenary until next week. The leadership was also directed to engage the Executive to ensure prompt settlement of the debts and restore normal legislative activities.
With yet another borrowing request before lawmakers and growing public frustration over unpaid obligations, the federal government faces increasing pressure to justify its fiscal choices.
Critics argue that while loans may be necessary to stimulate growth, the real challenge lies in transparency, efficient project execution