President Bola Tinubu has requested the National Assembly to approve N1.15 trillion borrowing from the domestic debt market to help finance the deficit in the 2025 budget.
The President’s conveyed his request in a letter read on the floor of the Senate during plenary on Tuesday.
According to the letter, the proposed borrowing is intended to bridge the funding gap and ensure full implementation of government programs and projects under the 2025 fiscal plan.
The Senate President, Godswill Akpabio has referred the request to the Senate Committee on Local and Foreign Debt to report back within one week for further legislative action.
Meanwhile, the request comes on the heels of last week’s Emir of Kano Muhammadu Sanusi criticism on the Tinubu’s administration rationale to borrow more funds despite the removal of fuel subsidy.
According to the former CBN Governor, the removal of petrol subsidy was expected to free more funds for the government, wondering why the borrowing has persisted.
Sanusi while speaking in Abuja, the nation’s capital at the Oxford Global Think Tank Leadership Conference and Book Launch, said the removal of fuel subsidy had led to increased revenue for the government, saying the government is creating new problem for the country after ending the fuel subsidy problem.
“If you stop paying subsidies but continue borrowing more, it means you’ve filled one hole only to dig another. The real challenge now is the quality of government spending and the management of the revenues saved,” he said.
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