President Bola Tinubu has asked the House of Representatives to approve three major financial proposals involving both external and domestic borrowings. These plans total billions in dollars, euros, and naira.
During Tuesday’s plenary session, Speaker Abbas Tajudeen read Tinubu’s letters detailing his requests. The president sought legislative backing for the federal government’s external borrowing rolling plan for 2025–2026, a $2 billion foreign currency bond issuance in the domestic market, and bonds to clear pension liabilities under the Contributory Pension Scheme (CPS).
“This request is pursuant to Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order,” Tinubu wrote.
He explained that proceeds from these borrowings will fuel growth in critical sectors, including infrastructure, job creation, and foreign exchange earnings.
However, Tinubu acknowledged the debt implications, noting that capital raising will increase Nigeria’s public debt stock and servicing costs.
External Loan Plan Targets Infrastructure Development
In a separate communication, Tinubu presented a detailed borrowing plan for 2025–2026. He outlined proposed loans amounting to $21.5 billion, €2.2 billion, 15 billion Japanese yen, and €65 million in grants. These funds will finance projects in infrastructure, agriculture, health, education, security, water supply, and employment generation.
“These projects were selected based on technical and economic evaluations and aim to reduce poverty, create jobs, and boost food security,” Tinubu stated.
Most of the projects will be spread across Nigeria’s 36 states and the Federal Capital Territory. He justified the borrowings by citing the impact of subsidy removal and declining revenues.
FG Seeks to Clear Pension Liabilities with ₦757.98bn Bond
Tinubu also urged lawmakers to approve the issuance of FGN bonds worth ₦757.98 billion to settle outstanding pension liabilities under the CPS as of December 31, 2023.
The request follows years of federal government non-compliance with the Pension Reform Act (PRA) 2014 due to revenue constraints.
“This bond issuance will enable the federal government to meet its obligations to retirees, restore confidence in the pension system, and improve the welfare of retired public servants,” Tinubu wrote.
Clearing pension arrears, he noted, would inject liquidity into the economy and improve public sector morale. The Federal Executive Council approved the proposal in February 2025.
All three borrowing requests have been referred to the House Committee on Finance for further review.
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