President Bola Tinubu has formally written to the Senate requesting approval to borrow N1.15 trillion from the domestic debt market to bridge the 2025 budget deficit, a move aimed at ensuring full implementation of government programmes.
Senate President Godswill Akpabio read the President’s letter during plenary, highlighting that the borrowing request aligns with the Fiscal Responsibility Act, 2007, which mandates National Assembly approval for all new federal borrowings. “I write to kindly request the approval of the National Assembly to borrow N1,150,000,000,000 from the domestic debt market to close the unfunded deficit gap created by the increase in the budget size,” the letter partly read.
The budget, approved at N59.9 trillion, had created a N14 trillion deficit, while the previously approved domestic borrowing limit of N12.95 trillion left an unfunded gap of about N1.1 trillion. Akpabio referred the request to the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wammako, for review and reporting within one week.
Amid the budget developments, hundreds of members of the All Indigenous Contractors Association of Nigeria (AICAN) protested outside the National Assembly over unpaid contracts, claiming the federal government owes verified debts of about N760 billion.
“Government officials keep saying that our payments have been approved and warrants issued, but there is no cash backing,” AICAN leaders lamented. They warned that future contracts would require upfront mobilisation payments until outstanding debts are settled.
Akpabio acknowledged the protests during plenary, noting that part of the proposed loan would be used to pay local contractors.
In a separate development, the Senate resolved to conduct a full-scale investigation into railway projects executed under former President Muhammadu Buhari, following repeated derailments and service failures on the Itakpe–Warri standard gauge rail line.
Senator Ede Dafinone, who sponsored the motion, said, “The line, commissioned with great national fanfare, has become a source of embarrassment due to frequent derailments and mechanical failures.” He urged immediate technical assessment and enhanced operational capacity for the line.
Senate President Akpabio expressed outrage over the scale of mismanagement. “You’ll be shocked that the same people who mismanaged these projects are now seeking to take back government. They left behind a trail of waste, debt, and deception,” he said. Akpabio stressed that most of the derailments occurred before the current administration, clarifying that the Tinubu government inherited systemic failures.
The upper chamber empowered its Committee on Land Transport to conduct on-the-spot assessments and established a National Rail Safety and Standards Unit to enforce compliance, monitor performance, and hold responsible parties accountable.
Despite geopolitical tensions, the naira strengthened at the official foreign exchange market, closing at N1,433.65 per dollar, up from N1,436.34. The parallel market rate remained flat at N1,440 per dollar.
Nigeria also plans to issue $2.3 billion in Eurobonds this week, potentially including 10-, 15-, and 30-year securities, pending Ministry of Justice approval. Analysts, including Mr. Ayokunle Olubunmi of Agusto & Co., noted, “Investors are taking early positions in anticipation of the new instruments, reflecting continued confidence in the external debt market.”
Meanwhile, the domestic stock market fell by N611.9 billion, with market capitalisation closing at N96.97 trillion, reflecting cautious investor sentiment amid pending legislative action on the borrowing request.
The Senate’s oversight on railways, coupled with the President’s borrowing request, signals heightened scrutiny over fiscal management and infrastructure development, reinforcing the legislature’s role in ensuring transparency and accountability.
