President Bola Tinubu has formally requested the National Assembly’s approval for a significant new external borrowing plan totaling over $21.5 billion, as well as the issuance of a domestic bond worth ₦757.9 billion aimed at clearing outstanding pension liabilities.
The President’s requests were contained in three separate letters transmitted to the National Assembly and read on the floor of the House of Representatives by Speaker Tajudeen Abbas on Tuesday.
In one of the letters, Tinubu sought approval for the creation of a foreign currency-denominated issuance programme within the domestic debt market.
The proposed $2 billion capital raise will be managed by the Debt Management Office in line with the Presidential Executive Order on Foreign Currency Denominated Financial Instruments, Local Issues Programme, 2023.
He noted that proceeds from the bond would support key sectors of the economy to stimulate growth, develop infrastructure, create jobs, and enhance foreign exchange inflows.
According to the President, “the total facility sought under the external borrowing plan includes USD 21,543,647,912, EUR 2,193,856,324.54, and 15 billion Japanese Yen, in addition to a grant of 65 million EUR.”
He justified the borrowing plan, stating, “In light of the significant infrastructure deficit in the country and the paucity of financial resources needed to address this gap amid declining domestic demand, it has become essential to pursue prudent economic borrowing to close the financial shortfall.”
Tinubu assured lawmakers that the borrowed funds would be invested in vital infrastructure projects, particularly in railway development, healthcare, and nationwide programs spanning the 36 states and the Federal Capital Territory.
“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as to improve the livelihoods of Nigerians,” he stated.
However, he acknowledged that the borrowing programme would increase Nigeria’s public debt and servicing obligations.
In another letter, the President requested legislative approval for the issuance of Federal Government bonds totaling ₦757.98 billion to clear unpaid pension liabilities under the Contributory Pension Scheme as of December 2023.
Citing the Pension Reform Act (PRA) 2014, Tinubu admitted the government had been unable to meet its pension commitments due to revenue constraints.
He argued that addressing the backlog would ease the burden on retirees, restore trust in the pension system, raise morale among public workers, and inject liquidity into the economy.
The President revealed that the bond issuance had been approved by the Federal Executive Council on February 4, 2025. While acknowledging the cost implications, he said the benefits outweigh the downsides.
Appealing for swift legislative action, Tinubu pledged transparency and accountability in the disbursement of the funds.
“While I look forward to the progression and timely approval of the House of Representatives, please accept, Your Honourable Speaker, the assurances of my high regards,” the President concluded.
The letters have been referred to the House Committees on National Planning and Economic Development and Pensions for further consideration.
