From Adesuwa Tsan, Abuja
President Bola Tinubu has formally requested the approval of the National Assembly for loans to bridge Nigeria’s infrastructure deficit, stabilise the economy, and address longstanding pension liabilities.
In three separate letters read on the floors of both the Senate and the House of Representatives on Monday, May 26, 2025, President Tinubu outlined proposals for external and domestic borrowings, including a $21.54 billion external borrowing plan, a $2 billion foreign currency bond programme, and a ₦757.98 billion bond issuance to offset accrued pension liabilities under the Contributory Pension Scheme.
In the first letter, Tinubu requested approval for $2 billion for the foreign currency-denominated bond issuance in the domestic market programme of the Federal Government.
The initiative, to be managed by the Debt Management Office, is expected to be executed within the domestic debt market.
According to the president, proceeds from the bond issuance will be directed towards priority sectors of the economy, including manufacturing, energy, infrastructure, and technology.
He emphasised that the programme is part of broader efforts to diversify funding sources, improve foreign exchange inflows, create employment opportunities, and stimulate economic growth amid ongoing fiscal challenges.
In the second letter, Tinubu sought the National Assembly’s endorsement of Nigeria’s 2025–2026 External Borrowing Rolling Plan. The financing package includes $21.54 billion, €2.19 billion, ¥15 billion, and a €65 million grant.
He explained that the loans would be sourced from multilateral and bilateral lenders and will be utilised to fund critical projects across various sectors, including transportation, power, healthcare, agriculture, education, and national security.
The president acknowledged that Nigeria’s revenue base remains constrained due to the removal of petrol subsidies and other structural reforms. He stressed that borrowing is a necessary step to sustain investment in essential public infrastructure and social services until domestic revenue improves.
In the third correspondence, President Tinubu requested the legislature to authorise a N757.98 billion bond issuance specifically to settle accrued pension rights for federal workers who retired under the Contributory Pension Scheme as of December 2023.
The proposal, which has already received approval from the Federal Executive Council, aims to clear the longstanding backlog of pension liabilities and provide relief to thousands of retirees.
President Tinubu described the bond as a measure to not only alleviate the financial hardship faced by retirees but also to reinforce public confidence in the integrity and sustainability of the pension system.
The Senate referred the requests to its Committee on Local and Foreign Debts. It is to report back in two weeks.