President Bola Tinubu has written to the House of Representatives, requesting its approval to borrow N1.15 trillion to finance budget deficit, created by increase in the budget size, over and above the prior approved revenue and borrowing plans.
The request was contained in a letter addressed to the Speaker of the House, Hon. Abbas Tajudeen, and read at plenary on Wednesday by Deputy Speaker Benjamin Kalu, who presided over the sitting.
The letter reads: “I write to kindly request for the approval of the National Assembly (NASS) to establish a One Trillion, One Hundred and Fifty Billion Naira (N1.15.00 trillion) borrowing Programme in the domestic debt market to close the unfunded deficit gap created by the increase in the budget size, over and above the prior approved revenue and borrowing plans.
“This request is pursuant to the provisions of Section 44(1-2) of the Fiscal Responsibility Act (FRA), 2007, which requires the approval of the NASS for all New Borrowings by the Federal Government of Nigeria (FGN).
“The Right Honourable Speaker of the House of Representatives may wish to note that National Assembly passed a budget of N59.99 Trillion, an increase of N5 25 Trillion from the 49.74 Trillion budget proposed by the Executive. This increase created a budget deficit of N14.10 Trillion.
“However, the proposed borrowing approved in the budget was N12.95 Trillion, which occasioned an unfunded deficit of N1,147,462,863.321.39. It is, therefore, necessary to increase the domestic borrowing limit in the 2025 budget by N1,147,462,863,321.39 to close this gap.
“Based on the foregoing. I wish to request for the approval of the House of Representatives for the establishment of a One Trillion, One Hundred and Fifty Billion Naira (N1.15.00 trillion) borrowing Programme in the domestic debt market to close the unfunded 2025 budget deficit gap.
“While I look forward to the timely approval of the House of Representatives, please accept, Rt. Honourable Speaker, the assurances of my consideration personal regards.”
After reading the letter, the House referred the request to the House Committee on Aids, Loans and Debt Management for further scrutiny.
The House mandated the committee to commence legislative consideration of the request and report back to the House for further action.
