Abuja, Nigeria — President Bola Ahmed Tinubu has requested Senate approval for a fresh N1.15 trillion domestic borrowing to fund the deficit in the 2025 budget, even as lawmakers move to investigate multi-billion-dollar railway projects executed under former President Muhammadu Buhari.
The President’s borrowing request was contained in a letter read on Tuesday by Senate President Godswill Akpabio during plenary.
Tinubu Requests N1.15tr to Fund 2025 Budget Deficit
In the letter, President Tinubu explained that the additional borrowing would help bridge the funding gap created by the expansion of the 2025 fiscal plan.
“I write to request the approval of the National Assembly to borrow N1.15 trillion from the domestic debt market to close the unfunded deficit created by the increase in budget size,” the letter stated.
He noted that the loan request complies with the Fiscal Responsibility Act (2007), which requires National Assembly approval for all federal borrowings.
The President added that the 2025 budget—passed at N59.9 trillion—was N5.25 trillion higher than the Executive’s initial proposal, creating a deficit of N14 trillion, of which N1.1 trillion remains unfunded.
Akpabio referred the request to the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wammako (APC, Sokoto North), and directed the committee to report back within a week.
Senate Launches Probe of Buhari’s Railway Projects
Meanwhile, the Senate on Tuesday resolved to launch a comprehensive investigation into the Buhari administration’s railway projects following persistent derailments, vandalism, and mechanical failures on the Itakpe–Warri standard gauge rail line.
The resolution followed a motion by Senator Ede Dafinone (Delta Central), who decried “disturbing and persistent technical breakdowns” on the Itakpe–Warri corridor.
Dafinone revealed that the line had recorded over 10 derailments and multiple mechanical faults between 2023 and 2025, undermining public confidence and passenger safety.
The Senate subsequently set up an ad hoc committee to probe contract execution, funding, and technical compliance of all railway projects undertaken during Buhari’s tenure.
The nine-member panel includes Senators Adams Oshiomhole, Adamu Aliero, Wasiu Eshinlokun, Ibrahim Dankwabo, Ireti Kingibe, and Solomon Adeola, among others.
Akpabio Slams Buhari-Era Mismanagement
A visibly angry Senate President Akpabio condemned the collapse of recently built railway lines, describing it as “a tragic symbol of corruption and deceit.”
“Trillions were spent, yet the lines failed within months. Nigerians deserve to know if these were new projects or refurbished scraps repainted as new,” he said.
He further accused those behind the failed projects of attempting to return to power, warning that the Senate would “dig deep, expose corruption, and ensure accountability.”
The chamber also directed the Ministry of Transportation and the Nigerian Railway Corporation (NRC) to conduct immediate repairs and safety reviews, while its Committee on Land Transport carries out an on-site assessment of the affected routes.
Naira Strengthens Despite Geopolitical Tensions
On the economic front, the naira appreciated at the Nigerian Foreign Exchange Market (NFEM), closing at N1,433.65 per dollar on Tuesday, up from N1,436.34 the previous day — reflecting renewed market stability despite geopolitical jitters.
The currency’s recovery came amid comments by former U.S. President Donald Trump warning of possible action against Nigeria over alleged religious persecution.
At the parallel market, the naira traded flat at N1,440 per dollar, maintaining its rate from Monday.
Nigeria Plans $2.3bn Eurobond Sale
According to Bloomberg, Nigeria plans to issue $2.3 billion in Eurobonds this week, including 10-year and possibly 15- or 30-year securities, pending approval from the Ministry of Justice.
Financial analyst Ayokunle Olubunmi of Agusto & Co. said investor sentiment is improving ahead of the sale.
“The rebound in Eurobond prices signals renewed investor confidence and early positioning for Nigeria’s new issuance,” he noted.
Contractors Protest Unpaid Government Debts
In a related development, hundreds of indigenous contractors under the All Indigenous Contractors Association of Nigeria (AICAN) blocked entrances to the National Assembly to protest unpaid government debts amounting to over N760 billion.
They accused the government of neglecting local firms in favor of foreign contractors, with some businesses reportedly facing bankruptcy due to unpaid verified projects.
Akpabio acknowledged the protests, assuring that part of the new borrowing would be used to settle outstanding debts owed to local contractors.
“We cannot continue to owe our local contractors while projects stall. This will be addressed,” Akpabio said.
The protest marked the latest in a series of demonstrations demanding fiscal accountability and prompt payments in Nigeria’s capital project financing.