Financial expert Bismarck Rewane has reassured Nigerians that President Bola Tinubu’s ₦1.15 trillion domestic loan request requires no public alarm. The Managing Director of Financial Derivatives Company Limited explained this position during a Thursday appearance on Channels Television’s Business Morning program.

Rewane clarified that the borrowing proposal represents budget ratification rather than new debt. He stated this approval process remains essential before concluding 2025 fiscal operations. The economist emphasized its connection to existing deficit financing provisions.

Standard Fiscal Procedure

“These approvals simply ratify existing arrangements,” Rewane noted. “They don’t constitute additional debts.” He described the ₦1.15 trillion figure as necessary for finalizing outstanding budget items. This step precedes preparations for the 2026 fiscal cycle.

The economist highlighted Nigeria’s strengthened revenue position following fuel subsidy removal. This financial improvement ensures comfortable debt repayment capacity. Rewane specifically addressed concerns about the loan’s magnitude.

Budget Context and Repayment Capacity

“Recall our ₦54 trillion budget with its ₦13-14 trillion deficit,” Rewane reminded viewers. “The president seeks instruments like bonds to finance this gap.” He stressed that enhanced revenues eliminate repayment concerns.

“Subsidy elimination has boosted available funds,” he continued. “Debt settlement faces no obstacles. This situation warrants zero panic.” The Senate received the presidential request through Senate President Godswill Akpabio.

Tinubu’s letter positioned the borrowing as vital for bridging budget funding gaps. It aims to ensure full implementation of government programs. The Senate has referred the proposal to its Local and Foreign Debt Committee.

Lawmakers mandated the committee to report within one week. This enables subsequent legislative consideration of the financing request.