President Bola Tinubu has formally requested the National Assembly’s approval for a new external borrowing plan totaling over $21.5 billion, along with a domestic bond issuance worth ₦757.9 billion aimed at settling outstanding pension liabilities under the Contributory Pension Scheme.
The requests were contained in three separate letters read by Speaker Tajudeen Abbas on the floor of the House of Representatives on Tuesday.
In the first letter, Tinubu asked the legislature to approve the establishment of a foreign currency-denominated bond issuance programme in Nigeria’s domestic debt market. The proposed programme—pegged at $2 billion—is to be managed by the Debt Management Office (DMO) under the 2023 Presidential Executive Order on Foreign Currency-Denominated Financial Instruments (Local Issues).
He explained that proceeds from the bond would be used to fund critical economic sectors, improve infrastructure, stimulate job creation, and boost foreign exchange reserves. The initiative, he added, would also provide local investors access to dollar-denominated investments, strengthen the naira, and deepen the domestic capital market.
The president also outlined a broader foreign loan request comprising:
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$21.5 billion
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€2.19 billion
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¥15 billion (Japanese Yen)
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and a €65 million grant.
He noted that the proposed borrowing is essential to offset the economic strain caused by fuel subsidy removal and help address Nigeria’s infrastructure deficit amid limited revenue and rising developmental needs.
“These funds will be directed toward key infrastructure projects across all 36 states and the FCT—including transportation, healthcare, and agriculture—with the goal of creating jobs, improving food security, and reducing poverty,” Tinubu stated.
Acknowledging concerns about rising public debt, Tinubu admitted the plan would increase both the debt stock and associated servicing costs but emphasized that the long-term socio-economic gains would outweigh the costs.
In a second letter, Tinubu requested lawmakers to approve the issuance of ₦757.9 billion in Federal Government bonds to clear unpaid pension liabilities up to December 2023.
Citing the Pension Reform Act of 2014, he explained that persistent revenue shortfalls have hindered the government’s ability to meet its pension commitments. He said settling the backlog would provide relief to retirees, restore public confidence in the pension system, and boost public sector morale.
“The proposed bond issuance received Federal Executive Council approval on February 4, 2025. It is a necessary intervention that will not only ease the burden on pensioners but also inject liquidity into the economy,” he said.
Tinubu concluded his letters by assuring the lawmakers of his administration’s commitment to accountability and transparency, and urged swift legislative action to ensure timely implementation.
The requests have been referred to the relevant House Committees, including the Committees on National Planning and Economic Development and Pensions, for further review and legislative processing.