Onome Amuge
President Bola Tinubu has formally requested legislative approval from the House of Representatives for a new external borrowing plan totalling over $21.5 billion, alongside a domestic bond issuance of N757.9 billion to address outstanding pension liabilities.
In a detailed communication to the Green Chamber, President Tinubu underscored the importance of the proposed 2025–2026 borrowing plan, emphasising its broad scope across critical economic sectors.
“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, among others,” the president stated.
The total external facility sought comprises USD 21,543,647,912, EUR 2,193,856,324.54, and 15 billion Japanese Yen, complemented by a grant of EUR 65 million. Tinubu highlighted the critical necessity of this borrowing, particularly in the wake of fuel subsidy removal and its attendant economic ramifications.
“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 president wrote.
Tinubu assured lawmakers that the proposed funds would be channelled into vital infrastructure projects, specifically in railways, healthcare, and nationwide development programmes spanning all 36 states and the Federal Capital Territory.
“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 emphasised.
Separately, President Tinubu also sought the House’s approval for the issuance of federal government bonds in the domestic market amounting to N757,983,246,572. These bonds are intended to settle accrued pension liabilities under the Contributory Pension Scheme (CPS).
Citing the Pension Reform Act 2014, Tinubu acknowledged that the government had faced challenges in fulfilling some statutory pension obligations due to revenue constraints, leading to a build-up of arrears and increasing 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 leading to accumulation of pension arrears with the attendant ICU retirees,” he stated.
The president noted that the proposal to issue bonds for the settlement of these liabilities had received approval from the Federal Executive Council at its meeting on February 4, 2025. According to Tinubu, settling these pension arrears will enhance retirees’ welfare, boost confidence in the pension system, and inject crucial liquidity into 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,” the letter elaborated.
President Tinubu concluded by appealing for timely legislative approval, reiterating his administration’s commitment to transparency and accountability. “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 request has since been referred to the House Committee on National Planning and Economic Development and the Committee on Pensions for further legislative scrutiny.
