Nigerians Do Not Need To Panic Over Tinubu’s ₦1.15 Trillion Loan Request – Rewane Reveals

The Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, has assured Nigerians that there is no cause for alarm over President Bola Tinubu’s fresh ₦1.15 trillion domestic loan request intended to finance the 2025 budget deficit.

Rewane gave the reassurance on Thursday, November 6, while speaking on Channels Television’s Business Morning, where he explained that the borrowing request is not an additional debt, but simply a ratification of provisions already contained in the 2025 budget.

According to the economist, the approval sought by the President from the National Assembly is a standard procedure required before the government can fully conclude all budgetary financing activities ahead of the 2026 fiscal cycle.

“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,” he stated.

“It is just a ratification of the financing of the budget because before you go into the budget for 2026, you need to up all the outstanding items. So, the ₦1.15trn for the domestic borrowing is just for the ratification of what has been there.”

He added that Nigeria’s revenue position has significantly improved following the elimination of fuel subsidies, which means repayment of the debt will pose no challenge.

Rewane stressed that the size of the 2025 borrowing request should not cause concern, noting that the scale of the national budget and its deficit requires structured financing.

“Don’t forget that our budget of this year was in excess of about ₦54 trillion and the deficit was almost as wide as ₦13 or ₦14 trillion. So what the president is asking for is the instrument to finance this by issuing bonds and other papers,” he explained.

“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.”

Naija News reports that on Tuesday, President Tinubu formally wrote to the National Assembly seeking approval to borrow ₦1.15 trillion from the domestic debt market to finance part of the 2025 budget deficit.

The request was contained in a letter read by the Senate President, Godswill Akpabio, during plenary.

The President noted that the borrowing would help bridge the funding gap and ensure full implementation of government programmes and capital projects under the 2025 fiscal plan.

The Senate has since referred the proposal to the Committee on Local and Foreign Debt, with a directive to report back within one week for further legislative action.