President Bola Tinubu has formally requested the House of Representatives’ approval for a major borrowing plan comprising $21.5 billion in external loans and ₦757.9 billion in domestic bonds to address critical national needs.
In a detailed letter to the Green Chamber, the President outlined the 2025-2026 borrowing strategy, emphasizing its sector-wide coverage with particular focus on infrastructure, agriculture, health, education, and job creation.
“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,” President Tinubu stated.
The proposed external borrowing includes:
– $21,543,647,912
– €2,193,856,324.54
– ¥15 billion (Japanese Yen)
– €65 million grant
Tinubu justified the request by citing Nigeria’s infrastructure deficit and post-subsidy economic realities: “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 assured that funds would target transformative projects including railways, healthcare, and development programs across all 36 states and FCT, aimed at “generating employment, promoting skill acquisition, fostering entrepreneurship, reducing poverty, and enhancing food security.”
Separately, Tinubu sought approval for ₦757.9 billion in domestic bonds to clear outstanding pension obligations under the Contributory Pension Scheme. He acknowledged the government’s historical non-compliance with the Pension Reform Act 2014 due to revenue challenges.
“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,” the President explained.
The bond issuance proposal received Federal Executive Council approval on February 4, 2025. Tinubu highlighted multiple benefits of the pension settlement: “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.”
Concluding his request, the President appealed for timely legislative consideration: “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.”
The House has referred both requests to its Committees on National Planning/Economic Development and Pensions for detailed scrutiny and recommendations. This dual financial strategy aims to simultaneously address Nigeria’s infrastructure financing gap and resolve longstanding pension liabilities affecting retirees’ welfare.
