Tinubu seeks N1.15trn loan as Senate launches probe into Buhari-era railway projects

In a day of significant economic and political developments, President Bola Tinubu has requested Senate approval to borrow an additional N1.15 trillion, while the Senate itself resolved to launch a full-scale investigation into the railway projects executed under the previous administration of President Muhammadu Buhari.

President Tinubu formally asked the Senate to approve a fresh N1.15 trillion loan from the domestic debt market.

The request, contained in a letter read during plenary by Senate President Godswill Akpabio, aims to finance a deficit created after the National Assembly increased the 2025 budget size.

The National Assembly passed a N59.9 trillion budget, which was N5.25 trillion higher than the executive’s proposal. This created a N14 trillion deficit. While the approved borrowing in the budget was N12.95 trillion, it left an “unfunded deficit” of N1.1 trillion, which this new loan is intended to cover.

The request has been referred to the Senate Committee on Local and Foreign Debt, which has one week to report back.

Prompted by persistent derailments and failures on the Itakpe-Warri standard gauge rail line, the Senate resolved to probe all railway projects executed under former President Buhari.

Senator Ede Dafinone highlighted that the line has recorded at least 10 derailments and numerous breakdowns between 2023 and 2025, endangering passengers.

Senators across the board expressed outrage, describing the situation as a “national embarrassment.”

They questioned how projects costing “trillions of naira” could fail so quickly after commissioning.

Senate President Godswill Akpabio delivered a fiery speech, accusing the previous administration of leaving behind “a trail of waste, debt, and deception.”

He questioned the quality of the work, asking if “truly new lines or refurbished scraps bought and repainted as new” were delivered.

An ad-hoc committee was established to conduct a comprehensive investigation into the contracts, funding, and execution of the railway projects and report back within six weeks.

The domestic stock market continued a downward trend, losing N611.9 billion in value.

The day was also marked by protests from the All Indigenous Contractors Association of Nigeria (AICAN), who blocked entrances to the National Assembly.

The contractors claim the federal government owes them about N760 billion for verified and completed projects, an amount they say could exceed N4 trillion when all obligations are included.

They lamented that the non-payment has crippled businesses, led to bank loan defaults, and worsened unemployment.

Senate President Akpabio acknowledged that part of the new N1.15 trillion loan being sought would be used to settle these local contractors.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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