Tinubu’s ₦1.15 Trillion Loan Request Nothing To Fear – Economist Rewane Reveals

The Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, has assured Nigerians that there is no reason for panic over President Bola Tinubu’s recent ₦1.15 trillion domestic loan request meant to finance the 2025 budget deficit.....KINDLY READ THE FULL STORY HERE▶

Speaking on Channels Television’s Business Morning on Thursday, November 6, Rewane clarified that the borrowing request is not an additional debt, but rather a formal ratification of provisions already embedded in the 2025 budget framework.

According to him, the President’s request to the National Assembly follows standard budgetary procedure, allowing the government to tidy up outstanding financing before the 2026 fiscal cycle begins.

“The approvals being requested now are simply to ratify existing provisions — these are not new debts,” Rewane said.

“Before moving into the 2026 budget, the government must reconcile all pending items. The ₦1.15 trillion domestic borrowing is only a confirmation of what’s already there.”

The economist further explained that Nigeria’s improved revenue position following the removal of fuel subsidies will make debt repayment manageable.

Rewane noted that the scale of borrowing should not trigger concern, emphasizing that the size of the national budget and its deficit demands structured financing mechanisms.

“Our 2025 budget exceeds ₦54 trillion, with a deficit around ₦13 to ₦14 trillion. What the President seeks is simply authorisation to issue bonds and related instruments to finance that gap,” he stated.

“With higher revenues and reduced subsidies, the capacity to service these obligations is secure. There’s truly no cause for alarm.”

Earlier in the week, President Tinubu formally wrote to the National Assembly seeking approval to borrow ₦1.15 trillion from the domestic debt market to fund part of the 2025 deficit.

The letter, read by Senate President Godswill Akpabio during plenary, explained that the borrowing would help bridge financing gaps and ensure the smooth execution of government programmes and capital projects under the current fiscal plan.

The Senate has since referred the proposal to the Committee on Local and Foreign Debt for review, with a mandate to report back within a week.