The Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, says there is no cause for concern over President Bola Tinubu’s fresh ₦1.15 trillion domestic loan request aimed at financing the 2025 budget deficit.
Speaking on Channels Television’s Business Morning programme on Thursday, Rewane explained that the request before the National Assembly was not for new borrowing but a ratification of what was already captured in the 2025 budget.
“I think the approvals being requested now are just to ratify what is there; these are not additional debts,” Rewane said. “It is simply a ratification of the financing of the budget before the government moves on to the 2026 budget cycle.”
He noted that the borrowing plan would not pose repayment challenges, citing improved government revenues following the removal of fuel subsidies.
“Because subsidies have been virtually eliminated, the revenue available to pay up this debt when it is due is not in doubt. So, it is not any reason to panic at all,” he added.
President Tinubu had earlier this week written to the National Assembly seeking approval for a ₦1.15 trillion loan from the domestic debt market to bridge the 2025 budget deficit and ensure implementation of government programmes.
The Senate President has since referred the request to the Senate Committee on Local and Foreign Debt, which is expected to report back within a week for further legislative consideration.
