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•M oves to raise NEXIM Bank capital base to N1trn, establish export trust fund, special tribunal for insurance disputes
Sunday Aborisade and Adedayo Akinwale in Abuja
Senate yesterday approved President Bola Tinubu’s request to raise an additional N1.15 trillion through domestic borrowing to plug the funding shortfall in the 2025 Appropriation Act.
The approval followed the consideration and adoption of the report of the Senate Committee on Local and Foreign Debts, which reviewed the financial implications of the increased budget size and identified a resultant deficit.
Equally, House of Representatives approved the president’s new borrowing plan of N1.15 trillion.
That was as Senate took bold steps towards strengthening Nigeria’s financial institutions through sweeping reforms that included a proposed raise in the capital base of Nigerian Export-Import Bank (NEXIM) to N1 trillion, establishment of an Export Development Trust Fund, and creation of a special tribunal to resolve insurance disputes.
Presenting the report, Deputy Chairman of Senate Committee on Local and Foreign Debts, Senator Manu Haruna, explained that the National Assembly had passed a N59.99 trillion budget, exceeding the executive’s original proposal of N54.74 trillion.
According to him, since the initial borrowing plan approved by the executive was N12.95 trillion, an unfunded gap of N1.147 trillion emerged, prompting the need for the additional domestic borrowing.
“It is, therefore, necessary to increase the domestic borrowing limit in the 2025 budget to close this gap,” Haruna told the chamber.
The committee recommended that the Federal Ministry of Finance and the Debt Management Office (DMO) should undertake the borrowing strictly within approved fiscal parameters and in line with the Fiscal Responsibility Act.
It urged the agencies to ensure transparency, sustainability, and favourable lending terms.
To strengthen accountability, the committee directed that Senate Committee on Local and Foreign Debts should oversee the implementation of the borrowing programme.
Haruna said the committee would receive quarterly reports from the DMO, monitor compliance with debt sustainability thresholds, and report any deviations to the Senate for further legislative action.
Supporting the report, Chairman of Senate Committee on Appropriations, Senator Solomon Adeola (Ogun West), described the borrowing as necessary to ensure full implementation of the 2025 budget, particularly capital projects.
Adeola said the choice of domestic borrowing was a prudent step that would help the government avoid exchange rate risks associated with external debts, while also boosting local financial markets.
Senator Abdul Ningi (Bauchi Central) aligned with Adeola’s position, stressing the urgency of securing the funds to sustain budget implementation timelines.
Ningi, however, called for stronger oversight by both the appropriations and public accounts committees to ensure the funds were applied strictly to the purposes approved by the National Assembly.
Senate Chief Whip, Senator Tahir Monguno, seconded the motion, underscoring the need for accountability, compliance, and efficient utilisation of the borrowed funds.
In response to concerns raised during the debate, the senate also adopted an additional recommendation mandating the appropriations committee to monitor the disbursement and utilisation of the borrowed funds to ensure they aligned with the approved expenditure framework.
At the House of Representatives, while giving the breakdown of the report, the chairman of the committee, Hon. Abubakar Nalaraba, called for the support of his colleagues to ensure approval of the president’s request.
The lawmakers, through the Committee on Supply, also approved the request to refinance the $1,118,352,000 Eurobonds (7.625% $1.118 billion NOV 2025) maturing on November 21, 2025.
The House also approved the request to access aggregate external capital of $2,347,465,000 ($1.229 billion and $1.118 billion), through any of the following option(s) in the International Capital Market (ICM): Issuance of Eurobonds, Loan syndications, Bridge Finance Facility from Bookrunners and Direct Borrowing from international Financial Institutions.
Meanwhile, Senate, yesterday, took bold steps towards strengthening Nigeria’s financial institutions through sweeping reforms that included a proposed raise in the capital base of NEXIM Bank to N1 trillion, establishment of an Export Development Trust Fund, and creation of a special tribunal to resolve insurance disputes. These were major highlights at the public hearing organised by Senate Committee on Banking, Insurance and Other Financial Institutions on two critical bills.
The proposed pieces of legislation were Nigerian Export-Import Bank (Amendment) Bill, 2025, and National Insurance Commission (Repeal) and Insurance Regulatory Commission Bill, 2025.
They were both designed to fortify Nigeria’s financial ecosystem and align it with global standards.
The event, chaired by Senator Mukhail Adetokunbo Abiru, drew an array of stakeholders from across the financial, insurance, manufacturing, and academic sectors.
In his opening address, Abiru said the bills represented “a crucial step in shaping the future of Nigeria’s financial system” by modernising outdated laws and fostering innovation-driven regulation.
He stated that the NEXIM Amendment Bill would update the 1991 Act that established the bank, while the new Insurance Regulatory Commission Bill sought to replace the obsolete 1997 NAICOM Act.
Both, he said, would “ensure Nigeria’s financial system becomes more transparent, competitive, and globally aligned”.
Abiru said, “Effective lawmaking is never a solitary process. We are here to critically examine both bills and ensure they align with our national goals of economic transformation and financial stability.”
In a message delivered by Senate Chief Whip, Senator Tahir Monguno, on behalf of Senate President Godswill Akpabio, the upper chamber described the two bills as “a covenant with Nigeria’s economic future”.
Akpabio said the proposed reforms were not mere legislative exercises but instruments of national renewal.
He said, “The NEXIM Bank is not just a bank; it is a bridge between our factories and the world. It must be empowered to lead, not just to lend.
“Similarly, the insurance sector must rise beyond routine paperwork to become a bulwark of trust and fairness in our economy.”
He urged lawmakers to legislate “for posterity, not convenience,” emphasising that history would remember the 10th Senate as one that “met the hour with clarity, courage, and conviction”.
NEXIM Bank Managing Director, Abba Bello, justified the proposed amendments, stressing that the 33-year-old law has become obsolete.
Bello said the bank’s current capital of N50 billion, roughly $33 million, was “grossly inadequate” to support Nigeria’s expanding export ambitions, particularly under the African Continental Free Trade Area (AfCFTA).
Bello said, “We fully support the proposal to raise the capital base to at least N500 billion, and ideally N1 trillion, to enable NEXIM to deliver on its mandate.”
He also backed reforms that would separate the roles of the Central Bank of Nigeria (CBN) from NEXIM’s board leadership, promote continuity of governance, and create an Export Development Fund to support export-oriented businesses.
Several participants echoed Bello’s position. Capital Market Academics of Nigeria urged lawmakers to peg NEXIM’s minimum capital at N1 trillion instead of N500 billion, citing the stronger financial standing of peer institutions in India, China, and South Africa.
The association, in its position paper, said, “NEXIM’s undercapitalisation has limited its impact and excluded it from global credit ratings.” It called for a more inclusive board structure featuring the Chartered Institute of Bankers and National Association of Chambers of Commerce.
Ministry of Finance Incorporated (MOFI) also supported the N1 trillion benchmark and clarified that the government’s shares in NEXIM should be held through MOFI, in line with its statutory mandate as the Federal Government’s asset-holding entity.
Similarly, Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, described the establishment of an Export Promotion Trust Fund as “a masterstroke” that could transform Nigeria’s non-oil export sector”.
Omosehin said, “This is a long-overdue innovation that will allow exporters to access funding for raw materials, logistics, and capital goods.”
He further backed NEXIM’s inclusion of the insurance regulator on its board to strengthen underwriting standards and risk management.
Nigeria Deposit Insurance Corporation (NDIC), in its position paper, called for its inclusion on NEXIM board, citing its expertise in risk management.
NDIC also supported the higher capital base and demanded stricter accountability for the proposed trust fund.
The construction and manufacturing sectors’ position paper commended the new Export Promotion Fund, but urged lawmakers to ensure that building materials, construction technology, and housing components were explicitly listed as eligible export items.
Deliberations also focused on the Insurance Regulatory Commission Bill, which seeks to repeal and replace the 1997 National Insurance Commission Act.
Omosehin said the new law was designed to “reflect modern realities” by empowering the regulator to supervise digital insurance platforms, issue compliance directives, and merge failing institutions when necessary.
A key feature of the proposed legislation is the creation of an Insurance Dispute Resolution Tribunal, which stakeholders described as a transformative reform that would enhance investor and consumer confidence.
Omosehin said, “The tribunal will provide quick, affordable, and professional redress to policyholders. It will restore trust in the system and encourage more Nigerians to embrace insurance.”
The bill also proposes new regulatory powers, updated board composition, stricter compliance timelines for insurance levies, and a framework for regulating actuarial practice, areas stakeholders agreed were long overdue.
In his closing remarks, Abiru commended all stakeholders for their depth of engagement and reaffirmed the senate’s resolve to enact laws that will strengthen Nigeria’s financial architecture.
He said, “Our goal is to produce legislation that strengthens institutions, inspires confidence, and positions Nigeria’s financial system for global relevance.
“With your cooperation, we shall deliver reforms that make our financial system not only efficient but transformative.”
If passed into law, the two bills, with their far-reaching proposals for recapitalisation, creation of a trust fund, and establishment of a specialised tribunal, could mark one of the most significant overhauls of Nigeria’s financial regulatory framework in decades.
