By Chukwudi Obasi, Abuja
President Bola Tinubu has requested the National Assembly’s approval for a new external borrowing plan totalling over $21.5 billion and a domestic bond issuance of ₦757.9 billion to clear outstanding pension liabilities.
The requests were contained in three separate letters addressed to the federal legislature and read on the floor of the House of Representatives on Tuesday by Speaker Tajudeen Abbas.
In one of the letters, President Tinubu sought legislative endorsement for the establishment of a foreign currency-denominated bond issuance programme in the domestic debt market. The initiative, which will be executed by the Debt Management Office (DMO), aims to raise $2 billion in line with the 2023 Presidential Executive Order on Foreign Currency-Denominated Financial Instruments, specifically the Local Issues Programme.
According to the President, the proceeds from the dollar-denominated bonds will be invested in critical sectors of the economy, including infrastructure, job creation, and foreign exchange generation. He explained that the initiative is also intended to deepen the local financial market, offer dollar investment opportunities to domestic investors, and stabilise the naira by strengthening the nation’s external reserves.
In a broader borrowing framework, Tinubu asked lawmakers to approve a multilateral and bilateral facility comprising $21.54 billion, €2.19 billion, 15 billion Japanese Yen, and an additional €65 million grant. He said the loans are necessary to support Nigeria’s development drive following the removal of the fuel subsidy and the resulting economic strain.
“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 letter read.
The President assured that the funds would be allocated to high-impact infrastructure projects across the country—including rail transport, healthcare, and national development initiatives in all 36 states and the Federal Capital Territory.
He stated that the strategic investments are designed to stimulate employment, enhance skill acquisition, and foster entrepreneurship while also improving food security and overall livelihoods.
However, Tinubu acknowledged that the new borrowing plan would lead to an increase in Nigeria’s public debt profile and debt servicing obligations.
In a second letter, the President requested approval to issue ₦757.98bn in Federal Government bonds to settle unpaid pension liabilities under the Contributory Pension Scheme as of December 2023.
He noted that the federal government had been unable to meet its pension obligations in recent years due to revenue constraints. The proposed bond issuance, which received approval from the Federal Executive Council on February 4, 2025, aims to alleviate the burden on retirees and restore confidence in the pension system.
“This move is not only expected to bring relief to retirees but also improve morale within the public service and inject liquidity into the economy,” the President stated.
While reiterating his administration’s commitment to transparency and fiscal responsibility, Tinubu appealed to lawmakers to consider the requests urgently in the national interest.
“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 referred the presidential requests to the appropriate House Committees, including the Committees on National Planning and Economic Development and Pensions, for further legislative scrutiny.
