Nigeria's National Assembly Approves Additional Borrowing to Bridge Budget Gap

Nigeria's National Assembly has approved 1.15 trillion naira in domestic borrowing to address a 2025 budget shortfall. The decision supports President Bola Tinubu's request amidst a 12.95 trillion naira deficit. Additionally, Nigeria raised $2.35 billion through Eurobond issuance, showing global confidence in its economic reforms.

On Wednesday, Nigeria's National Assembly gave the green light for an additional 1.15 trillion naira ($784 million) in domestic borrowing. This move is aimed at bridging a funding gap identified in the 2025 budget.

President Bola Tinubu, having previously sought this approval, pointed to the disparity between the executive's proposed 12.95 trillion naira deficit and the 14.10 trillion naira budget passed by legislators. The total 2025 budget amounts to 59.99 trillion naira, with plans to cover the deficit through both external and internal loans.

In a bid to secure external funding, Nigeria raised $2.35 billion through a Eurobond issuance last week, which attracted a remarkable $10.65 billion in bids. Finance Minister Wale Edun highlighted that the high demand demonstrates global confidence in Nigeria's economic reforms and its commitment to sustainable development.

(With inputs from agencies.)