President Bola Tinubu has formally written to both chambers of the National Assembly, requesting their consideration and approval of a new external borrowing plan amounting to over $21.5 billion.
Additionally, he is seeking approval for a domestic bond issuance of ₦757.9 billion to settle outstanding pension liabilities.
In letters addressed to the Senate and the House of Representatives, the President emphasized the strategic importance of the 2025–2026 borrowing plan, noting that it targets critical sectors of the economy.
According to the President, “The 2025–2026 borrowing plan covers all sectors, with a particular focus on infrastructure, agriculture, health, education, water supply, economic growth, security, employment generation, as well as financial and monetary reforms, among others.”
He detailed that the proposed external borrowing includes $21,543,647,912, €2,193,856,324.54, and 15 billion Japanese Yen, alongside a grant of €65 million.
President Tinubu described the proposed borrowing as essential in light of the economic challenges stemming from the removal of fuel subsidies. “Given the country’s significant infrastructure deficit and limited financial resources, coupled with declining domestic demand, it has become necessary to adopt prudent economic borrowing to bridge the financial gap,” he stated.
He assured lawmakers that the borrowed funds would be directed toward critical infrastructure projects—particularly in railways, healthcare, and development initiatives across the 36 states and the Federal Capital Territory.
“This initiative is designed to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, enhance food security, and improve the overall livelihoods of Nigerians,” he emphasized.
In a separate letter, the President also sought the Senate’s approval for the issuance of Federal Government bonds in the domestic market to clear pension arrears under the Contributory Pension Scheme (CPS), amounting to ₦757,983,246,572.
Citing the Pension Reform Act 2014, Tinubu noted that revenue constraints had hampered the government’s ability to meet its pension obligations, resulting in a backlog of arrears and hardship for retirees.
“The Federal Government has struggled to comply with certain provisions of the PRA 2014 due to revenue challenges, which has led to the accumulation of pension arrears and worsening conditions for retirees,” he explained.
He added that the Federal Executive Council approved the proposal to issue bonds for the settlement of pension liabilities during its meeting on February 4, 2025.
According to the President, settling these pension obligations would improve retirees’ welfare, boost confidence in the pension system, and inject liquidity into the economy.
“The initiative will enable the Federal Government to fulfill its obligations under the CPS and restore trust in the pension industry. It will also ensure better welfare for retirees by helping them meet basic needs, maintain their health, and avoid untimely deaths,” he wrote.
President Tinubu urged the Senate to expedite approval and reaffirmed his administration’s commitment to transparency and accountability. “While I look forward to timely consideration and approval by the House of Representatives, please accept, Honourable Speaker, the assurances of my highest regard,” he concluded.
