President Bola Tinubu on Tuesday requested the National Assembly’s approval for over $21.5 billion in external borrowing and a ₦757.9 billion domestic bond to offset outstanding pension liabilities.
The requests were conveyed in three separate letters read by House Speaker Tajudeen Abbas. The first seeks approval for a foreign currency-denominated issuance programme in the domestic debt market, targeting up to $2 billion under the 2023 Presidential Executive Order on Foreign Currency Instruments.
Tinubu said the funds would be invested in critical sectors: infrastructure, employment, FX inflows, and economic growth, while also deepening the financial market and stabilizing the exchange rate.
The full external borrowing plan includes: $21.54 billion, €2.19 billion, ¥15 billion (Japanese Yen), and A €65 million grant
Justifying the borrowing, Tinubu cited the impact of fuel subsidy removal, infrastructure deficits, and limited domestic revenue, stating the loans would fund nationwide development, especially in rail, healthcare, and skills development, with the goal of reducing poverty and boosting food security.
He acknowledged the borrowing would raise Nigeria’s public debt and servicing costs but stressed the long-term benefits.
In a second letter, Tinubu sought approval for a ₦757.98 billion bond issuance to clear pension arrears under the Contributory Pension Scheme as of December 2023. He cited provisions of the Pension Reform Act (2014) and noted that persistent revenue shortfalls had hindered the government’s ability to meet its obligations.
He argued that settling the arrears would ease retirees’ hardship, boost public sector morale, and stimulate economic activity by improving liquidity.
The Federal Executive Council approved the bond plan on February 4, 2025. Tinubu urged lawmakers to act swiftly, assuring them of his administration’s commitment to transparency and accountability.
The requests were referred to the relevant House Committees, including National Planning and Economic Development and Pensions, for further legislative action.
