Abuja, Nigeria
President Bola Tinubu has written to the national assembly seeking approval for an external loan of $21.5 billion.
Tinubu also asked the legislature to approve the issuance of ₦757.9 billion domestic bond for the settlement of outstanding national pension liabilities.
The requests were contained in three separate letters transmitted to the National Assembly and were read on the floor of the House of Representatives by the Speaker, Tajudeen Abbas, on Tuesday.
President Tinubu requested the National Assembly’s approval to establish a foreign currency-denominated issuance program within the domestic debt market.
According to the letter, the government plans to raise $2 billion, to be managed by the Debt Management Office, by the Presidential Executive Order on Foreign Currency Denominated Financial Instruments, Local Issues Programme, 2023.
The President explained that the funds would be directed toward key sectors of the economy that drive growth, improve infrastructure, generate employment, and increase foreign exchange inflows.
He further pointed out that this initiative would provide local investors with dollar-denominated investment options, deepen Nigeria’s financial markets, bolster foreign reserves, and help stabilise the exchange rate.
Tinubu specified that the total external borrowing request includes USD 21,543,647,912, EUR 2,193,856,324.54, and 15 billion Japanese Yen, alongside a grant of 65 million EUR.
He stressed that this borrowing is essential given the economic consequences following the removal of the fuel subsidy on the country and its people.
“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,” the president said.
The President assured lawmakers that the proposed funds would be channelled into critical infrastructure projects, especially in the areas of railways, healthcare, and nationwide development programs across all 36 states and the Federal Capital Territory (FCT).
“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 added.
However, President Tinubu acknowledged that the programme would lead to an increase in Nigeria’s public debt and its associated servicing costs.
In the other letter, Tinubu requested approval for the issuance of Federal Government bonds amounting to N757.98 billion to clear outstanding pension liabilities under the Contributory Pension Scheme as of December 2023.
Citing the Pension Reform Act (PRA) 2014, the president noted that the government has faced challenges in meeting pension obligations over the years due to revenue constraints.
He emphasised that settling these liabilities would ease retirees’ financial burdens, restore trust in the pension system, improve public servants’ morale, and stimulate economic growth by boosting liquidity.
The President further explained that the proposed bond issuance had already received approval from the Federal Executive Council on February 4, 2025, and outlined both the benefits and the cost implications, including the anticipated rise in public debt and servicing expenses.
Tinubu appealed to lawmakers for prompt approval, assuring them of his administration’s dedication to transparency and accountability.
“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,” he wrote.
The speaker has referred to the appropriate House Committees, including the Committee on National Planning and Economic Development and the Committee on Pensions, for further legislative scrutiny.
