President Bola Tinubu has formally requested the National Assembly’s approval for a new external borrowing plan amounting to over $21.5 billion, alongside a domestic bond issuance of ₦757.9 billion to clear outstanding pension liabilities.
The requests were contained in three separate letters addressed to the National Assembly, which were read on the floor of the House of Representatives on Tuesday by Speaker Tajudeen Abbas.
In the first letter, the President sought legislative consent for the establishment of a foreign currency-denominated bond issuance programme within the domestic debt market. The proposal includes a capital raise of up to $2 billion to be managed by the Debt Management Office (DMO), in accordance with the Presidential Executive Order on Foreign Currency-Denominated Financial Instruments (Local Issues Programme), 2023.
Tinubu stated that proceeds from the issuance would be channelled into key sectors capable of stimulating economic growth, improving infrastructure, creating employment opportunities, and enhancing foreign exchange inflows. He also noted that the initiative would expand investment options for local investors, deepen the financial markets, bolster Nigeria’s foreign reserves, and stabilise the exchange rate.
Under the external borrowing plan, the President is seeking approval for a total of USD 21,543,647,912, EUR 2,193,856,324.54, and 15 billion Japanese Yen, in addition to a €65 million grant.
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He justified the borrowing by citing the economic impact of fuel subsidy removal and the urgent need to close Nigeria’s infrastructure gap amidst dwindling revenues and rising demand.
“Given the scale of infrastructure deficit and limited financial resources, especially in a context of weakening domestic demand, there is an urgent need for responsible borrowing to bridge the financing gap,” he explained.
Tinubu assured lawmakers that the borrowed funds would support critical infrastructure, particularly in the areas of rail transport, healthcare delivery, and development initiatives across the 36 states and the Federal Capital Territory.
He added: “This initiative aims to create jobs, promote skills acquisition, support entrepreneurship, reduce poverty, improve food security, and enhance the overall wellbeing of Nigerians.”
However, the President acknowledged that the proposed measures would inevitably increase Nigeria’s public debt stock and debt servicing obligations.
In a second letter, Tinubu requested the National Assembly’s consent for the issuance of Federal Government bonds amounting to ₦757.98 billion to clear outstanding pension liabilities under the Contributory Pension Scheme (CPS) as at December 2023.
Citing the Pension Reform Act of 2014, he noted that the government had struggled to meet its pension obligations over the years due to fiscal constraints.
He argued that addressing the arrears would ease the burden on retirees, restore confidence in the pension scheme, boost public sector morale, and improve liquidity in the economy.
The bond proposal, he disclosed, had already received Federal Executive Council (FEC) approval on 4 February 2025. While highlighting the expected benefits, he also acknowledged the fiscal implications, especially the likely increase in debt servicing responsibilities.
Tinubu appealed to lawmakers for expedited approval, reaffirming his administration’s dedication to transparency and accountability.
“I look forward to the timely consideration and approval by the House of Representatives. Please accept, Honourable Speaker, the assurances of my highest regards,” the letter concluded.
The requests have been referred to the relevant House Committees for further legislative scrutiny, including the Committees on National Planning and Economic Development, and on Pensions.
