President Bola Tinubu has requested Senate approval to borrow ₦1.15 trillion from the domestic debt market to finance the deficit in the 2025 national budget.
The request, contained in a letter read by Senate President Godswill Akpabio during plenary on Tuesday, seeks to bridge the funding gap created by the increase in the 2025 budget size beyond the earlier approved revenue and borrowing plan.
Tinubu explained that the loan request complies with the Fiscal Responsibility Act, 2007, which mandates legislative approval for all new government borrowings.
He stated, "I write to kindly request the approval of the National Assembly to borrow ₦1,150,000,000,000 from the domestic debt market to close the unfunded deficit gap created by the increase in the budget size over and above the prior approved revenue and borrowing plans."
According to the president, the National Assembly passed a ₦59.9 trillion budget—₦5.25 trillion higher than the ₦49.74 trillion proposal initially presented by the executive—resulting in a total deficit of ₦14 trillion, of which only ₦12.95 trillion had been funded.
Senate President Akpabio referred the request to the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wamakko (APC, Sokoto North), for review and report within one week.
Meanwhile, the Senate on Tuesday resolved to launch a full-scale investigation into all railway projects executed under former President Muhammadu Buhari, citing frequent derailments, vandalism, and operational failures, particularly along the Itakpe–Warri corridor.
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The resolution followed a motion by Senator Ede Dafinone (Delta Central), who raised concerns over the deteriorating state of the Itakpe–Warri rail line despite huge public investments. He noted that the line had suffered at least 10 derailments between 2023 and 2025.
Supporting the motion, several lawmakers described the situation as a "national embarrassment," calling for accountability in the use of funds borrowed for the projects.
Senate President Akpabio described the situation as "tragic and unacceptable," vowing that the upper chamber would "expose corruption and ensure those responsible for failed rail projects are held accountable."
In a related development, Nigeria's financial markets showed mixed reactions on Tuesday. The naira appreciated slightly at the Nigerian Foreign Exchange Market (NFEM), closing at ₦1,433.65 per dollar compared to ₦1,436.34 the previous day.
At the same time, the domestic stock market fell by ₦611.9 billion as cautious sentiment persisted among investors. Market capitalization dropped from ₦97.58 trillion to ₦96.97 trillion, while the All-Share Index declined by 1,109.50 points to close at 152,629.61 basis points.
Meanwhile, Nigeria is also preparing to raise about $2.3 billion in Eurobonds this week to test global investor confidence, according to reports. The planned issuance could include 10-year and possibly 15- or 30-year maturities, pending final approval from the Ministry of Justice.
The Senate's dual action on fiscal and infrastructure oversight reflects the administration's attempt to stabilize public finances, restore investor confidence, and strengthen accountability in public spending.
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