Tinubu asks NASS to approve $21.5bn foreign loan, ₦758bn pension bond
By Msugh Ityokura
President Bola Tinubu Tuesday, asked the National Assembly, NASS to approve an external borrowing plan totalling $21.5 billion, as well as a fresh domestic bond issuance of ₦757.9 billion to offset lingering pension liabilities under the Contributory Pension Scheme, CPS
Tinubu’s requests were conveyed in three separate letters read on the floor of the House of Representatives by the Speaker, Tajudeen Abbas during plenary on Tuesday
In the first letter, President Tinubu sought legislative endorsement for a foreign currency denominated bond programme aimed at raising up to $2 billion through Nigeria’s domestic debt market
The initiative is to be executed by the Debt Management Office, DMO in accordance with the 2023 Presidential Executive Order on Foreign Currency Denominated Financial Instruments (Local Issuance Programme).
According to the president, proceeds from the bond would support critical sectors of the economy, particularly infrastructure development, job creation, foreign exchange inflow enhancement, and economic growth. He also emphasized that the programme would help deepen the domestic financial market, improve foreign reserves, and stabilize the naira.
The larger borrowing plan comprises $21.54 billion, €2.19 billion, 15 billion Japanese Yen, and a grant of €65 million. The president stressed the necessity of the loan given Nigeria’s post-subsidy economic climate and its growing infrastructure deficit.
“With limited revenue and rising demand for essential services, it has become imperative to explore responsible borrowing to bridge the fiscal gap,” Tinubu wrote.
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He assured the lawmakers that the funds would be dedicated to nationwide development efforts, including railway expansion, healthcare projects, and various programs in all 36 states and the FCT, aimed at tackling poverty, encouraging entrepreneurship, and boosting food security.
In a second letter, President Tinubu requested the House’ approval for the issuance of ₦757.98 billion in bonds to clear outstanding pension liabilities as of December 2023. This, he noted, aligns with the provisions of the Pension Reform Act of 2014.
The president admitted that the government’s revenue constraints had hindered the fulfillment of pension obligations in recent years
He argued that settling the backlog would provide relief to retirees, restore trust in the pension system, and revitalize the economy by enhancing liquidity and consumer spending.
The proposal, which already received the nod of the Federal Executive Council on February 4, 2025, would increase the nation’s debt burden, Tinubu acknowledged, but emphasized that the social and economic benefits outweighed the costs.
He appealed to the House for speedy consideration and approval, reiterating his administration’s commitment to fiscal transparency and accountability.
The Speaker, Abbas who presided over plenary referred the president’s requests to the House Committees on National Planning and Economic Development, and Pensions, for further legislative scrutiny.
