President Bola Tinubu has written to the House of Representatives seeking legislative consent for a substantial external borrowing package exceeding $21 billion, alongside a domestic bond initiative worth over ₦757.9 billion intended to address lingering pension arrears.
In a comprehensive message addressed to the Green Chamber, the president laid out the scope and significance of the proposed borrowing framework, which he described as essential for national growth and resilience amid current economic pressures.
The borrowing plan, according to Tinubu, is tailored to support all areas of the economy, with an emphasis on infrastructure development, agriculture, healthcare, education, access to clean water, financial reforms, security, and job creation.
The funding request includes a mix of financial instruments such as $21.5 billion in US dollars, €2.19 billion in euros, and 15 billion Japanese yen. It also includes a €65 million grant. The president argued that the funding is especially crucial given the challenges posed by the elimination of fuel subsidies and its broader economic effects on national revenue and expenditure.
Citing the nation’s considerable infrastructure shortfall and limited internal resources, Tinubu emphasized the necessity of responsible external borrowing to fill critical financial gaps.
He maintained that these funds would be channelled into high-impact projects, particularly in transportation and health infrastructure, and would also support broader developmental efforts across the country’s 36 states and the Federal Capital Territory.
Tinubu assured the House that the planned loans would not only aid in addressing infrastructure deficits but would also spur economic empowerment initiatives, support youth entrepreneurship, reduce poverty levels, strengthen food production, and ultimately uplift the living standards of citizens.
In addition to the external loan request, the president called on lawmakers to approve a plan to issue federal government bonds within the local financial market to clear longstanding pension obligations. The bond issuance, amounting to ₦757.98 billion, targets the settlement of accrued pension liabilities under the Contributory Pension Scheme (CPS).
Referencing the 2014 Pension Reform Act, Tinubu pointed out that over the years, the federal government has been unable to fully implement some of its provisions due to revenue limitations, which has resulted in an accumulation of pension debts and increased hardship for affected retirees.
The president further stated that the Federal Executive Council had already endorsed the proposal during a meeting held on February 4, 2025. He explained that resolving the backlog of pension payments would enhance the well-being of retirees, increase trust in the pension administration system, and provide financial stimulus within the economy.
According to the president, fulfilling these pension obligations would make it easier for retirees to afford basic living needs, improve their healthcare access, and possibly reduce premature deaths resulting from financial insecurity. Tinubu stressed that the move would also reflect his administration’s dedication to social justice and its broader reform agenda.
In wrapping up his appeal, Tinubu urged the House of Representatives to act promptly on the proposal. He reassured lawmakers of his government’s commitment to accountability, promising transparent use of the funds in accordance with the national interest.
The proposal has now been directed to the House Committees on National Planning and Economic Development and Pensions for thorough legislative review.
What you should know
President Tinubu’s borrowing request is one of the most ambitious since his administration began, reflecting the scale of economic challenges Nigeria currently faces.
The dual request seeks to address both infrastructural development and the welfare of retired government workers, signaling a two-pronged approach to economic recovery and social responsibility.
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