ABUJA – President Bola Tinubu has formally presented a significant financial proposal to the National Assembly. This proposal includes a substantial $21.5 billion external loan. It also features a ₦758 billion domestic bond aimed at clearing outstanding pension liabilities. According to the President’s letter, this bond issuance will tackle long-standing pension arrears. It also aims to fulfill the government’s promises to retired public sector workers. This crucial loan request is designed to finance vital projects. These projects will enhance infrastructure, health, education, and water supply across Nigeria.
The Senate President announced the loan request during today’s plenary session. The Senate Committee on Local and Foreign Debts will now examine the details of this proposal. This committee is expected to deliver its findings and recommendations within two weeks.
Further Details on the Tinubu Loan Request and Pension Commitments
President Tinubu also urged the Senate to authorize another important financial measure. He seeks approval to issue Federal Government bonds within the domestic debt market. These bonds are specifically designed to settle overdue pension liabilities under the Contributory Pension Scheme. The total for this bond issuance is ₦757.9 billion. The President emphasized that clearing these arrears would ease hardship for retirees. It would also help restore confidence in the nation’s pension system.
In a related development, the President has requested Senate approval to raise an additional $2 billion from the domestic market. These funds will channel much-needed investments into critical sectors of the economy, stimulating growth. This part of the loan request has also been forwarded to the Committee on Local and Foreign Debts for a two-week review.
Breakdown of the Revised External Borrowing Plan
Earlier, President Tinubu had communicated with the House of Representatives. He asked for their approval of the revised 2025–2026 external borrowing plan. This comprehensive plan outlines borrowing from several international sources, forming a key part of the overall financial strategy:
- $21.5 billion (USD)
- €2.2 billion (EUR)
- ¥15 billion (Japanese Yen)
- A €65 million grant
The Speaker of the House read the President’s letter detailing these figures. The stated goals for these international loans are to address Nigeria’s significant infrastructure deficit. They also aim to enhance employment opportunities for the populace. To specifically address overdue pension liabilities, the President is also requesting approval to borrow ₦757.98 billion from the domestic market. The President noted the necessity of these borrowings. He cited current economic conditions, including the ongoing impact of the fuel subsidy removal, as reasons for the loan request.
By Abiodun Labi
