Nigerians have been told not to panic over President Bola Tinubu’s fresh ₦1.15 trillion domestic loan requests to help finance the 2025 budget deficit.
The Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, stated this on during an interview on Channels Television’s Business Morning programme on Thursday.
Recall that last Tuesday; President Tinubu requested the approval of the National Assembly for a fresh ₦1.15 trillion borrowing from the domestic debt market to help finance the deficit in the 2025 budget.
The President’s request was conveyed 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.
Rewane, said that the loan approval the president is seeking from the National Assembly is simply to ratify what is already included in the 2025 budget, added that paying off the debt on schedule will not be a problem due to increased revenue following the Federal Government’s suspension of subsidies.
“I think the approvals that are being requested now are just to ratify what is there, these are not additional debts to be honest with you,” Rewane said on the programme.
“It is just a ratification of the financing of the budget because before you go into the budget for 2026 which will be announced any moment from now, you need to up all the outstanding items. So, the N1.15trn for the domestic borrowing is just for the ratification of what has been there.
“Don’t forget that our budget of this year was in excess of about N54 trillion and the deficit was almost as wide as 13 or 14 trillion naira. So what the president is asking for is the instrument to finance this by issuing bonds and other papers, so I don’t think it is anything to worry about.
“Because our revenue has increased, because subsidies have been virtually eliminated, you find that revenue available to pay up this debt when it is required is not in doubt. So, it is not any reason to panic at all.”
