US dollars
President Bola Tinubu has written to the House of Representatives, requesting legislative approval for a new external borrowing plan of $21.5 billion, alongside a domestic bond issuance of ₦757.9 billion for outstanding pension liabilities.
The Speaker, Rep. Tajudeen Abbas read the request during plenary in Abuja.
President Tinubu in the letter, highlighted the strategic significance of the 2025–2026 borrowing plan, noting that it spans key sectors of the economy.
“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.
According to Tinubu, the total facility sought under the external borrowing plan includes USD 21,543,647,912, EUR 2,193,856,324.54, and 15 billion Japanese Yen, in addition to a grant of 65 million EUR.
He noted that the proposed borrowing is crucial in light of the removal of fuel subsidy and its economic implications.
“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.”
Tinubu assured lawmakers that the proposed funds would be channeled into critical infrastructure projects, especially in the areas of railways, healthcare, and nationwide development programs across 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 emphasized.
President Tinubu also sought the House’s approval for the issuance of Federal Government bonds in the domestic market to settle accrued pension liabilities under the Contributory Pension Scheme (CPS) amounting to ₦757,983,246,572.
Citing the Pension Reform Act 2014, Tinubu noted that the government had been unable to comply with some statutory pension obligations due to revenue challenges, 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 added that the proposal to issue bonds for the settlement of the liabilities had received approval from the Federal Executive Council in its meeting of February 4.
According to the President, settling the pension arrears will improve retirees’ welfare, boost confidence in the pension system, and inject 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 stated.
President Tinubu however appealed to lawmakers for timely approval, assuring them of 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 Speaker therefore referred the request to the appropriate House Committees for further legislative action, including the Committee on National Planning and Economic Development and the Committee on Pensions. (NAN)
