President Bola Tinubu has formally requested the Senate’s approval to raise ₦1.15 trillion from the domestic debt market to cover the deficit in Nigeria’s 2025 budget.
The request was presented in a letter read by Senate President Godswill Akpabio during Tuesday’s plenary session. Tinubu explained that the borrowing is necessary to close the fiscal gap and ensure full implementation of government programmes and projects for the 2025 fiscal year.
Following the reading of the letter, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wammako (APC–Sokoto North), with instructions to report back within a week for further legislative action.
During the session, Akpabio also addressed the protests by local contractors that led to the temporary blockade of entrances to the National Assembly. He noted that part of the proposed loan would be used to clear outstanding debts owed to the contractors.
Earlier on Tuesday, members of the All Indigenous Contractors Association of Nigeria (AICAN) staged a protest at the National Assembly complex over alleged non-payment of billions of naira for completed government projects.
The protesters, carrying placards and chanting solidarity songs, accused the Federal Government of neglecting indigenous contractors while prioritising foreign firms. They claimed the government owes local contractors about ₦760 billion in verified debts, with the total outstanding liabilities possibly exceeding ₦4 trillion when other unpaid obligations are included.
Speaking to journalists, AICAN leaders said the prolonged delays in payment had driven many Nigerian contractors into bankruptcy, forcing some to lose properties to banks after defaulting on project-related loans.
“Government officials keep saying our payments have been approved and warrants issued, but there is no cash backing,” one contractor said. “We executed projects with borrowed funds, and now our assets are being seized because we cannot repay the banks.”
The association vowed not to accept new contracts unless adequate mobilisation funds are provided, insisting that past experiences of delayed payments had crippled many local businesses.
AICAN also appealed to President Tinubu to intervene directly and ensure that future capital projects are fully cash-backed to prevent recurring debt crises.
Despite official assurances that ₦3.1 trillion has been approved for contractor payments, many indigenous firms say they are yet to receive any funds.
Last month, Deputy Speaker of the House of Representatives Benjamin Okezie Kalu convened a meeting between AICAN representatives and Finance Minister Wale Edun to address the issue, but contractors say the discussions have yielded no concrete results.
The protesters called on the National Assembly to strengthen oversight of capital budget execution and ensure timely, transparent payments for verified projects.
