President Bola Ahmed Tinubu has formally requested the approval of the House of Representatives for a new external borrowing plan amounting to over $21.5 billion and the issuance of domestic bonds worth ₦757.9 billion. The funds, according to the President, are intended to support critical sectors of the economy and settle outstanding pension liabilities.

In a detailed communication to the Green Chamber, President Tinubu outlined the strategic significance of the proposed 2025–2026 borrowing plan, stressing its alignment with national development priorities across various sectors, including infrastructure, agriculture, healthcare, education, water supply, economic growth, security, and employment generation.

“The 2025–2026 borrowing plan covers all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security, and employment generation, as well as financial and monetary reforms,” Tinubu wrote.

The external borrowing breakdown includes $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, alongside a grant of €65 million. Tinubu justified the borrowing request by citing the economic impact of the removal of fuel subsidies and the urgent need to address Nigeria’s widening infrastructure deficit amid dwindling domestic revenue.

“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,” the President stated.

He assured lawmakers that the borrowed funds would be channeled into essential infrastructure and development programmes, particularly in the areas of rail transport, healthcare services, and community-based initiatives 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 said.

In a separate request, President Tinubu sought approval for the issuance of Federal Government bonds to the tune of ₦757.98 billion. The funds are intended to settle pension arrears under the Contributory Pension Scheme (CPS), in accordance with the Pension Reform Act 2014.

Tinubu acknowledged that the federal government has struggled with statutory pension obligations in recent years due to revenue shortfalls, resulting in the accumulation of arrears and financial hardship for retirees.

“The House of Representatives is invited to note that the federal government has not been compliant with the implementation of the above provisions of the PRA 2014 over the years due to revenue challenges,” the President wrote. He added that the bond issuance proposal had received the approval of the Federal Executive Council at its meeting on February 4, 2025.

Tinubu emphasized that settling the pension liabilities would improve the welfare of retirees, restore trust in the pension system, and provide a liquidity boost to the economy.

“It will enable the Federal Government of Nigeria to meet obligations under the CPS and restore confidence in the pension industry. It will also ensure positive welfare even for the retirees, as this will enable them to meet their basic needs, improve health, and avoid untimely death,” he said.

Concluding the letter, the President appealed for prompt legislative approval, reaffirming his administration’s commitment to transparency and accountability.

The loan and bond requests have been referred to the House Committee on National Planning and Economic Development and the Committee on Pensions for further consideration.