President Bola Ahmed Tinubu has formally requested the approval of the National Assembly for a new external borrowing plan totaling over $21.5 billion, alongside a domestic bond issuance of ₦757.9 billion to address outstanding pension liabilities.
The request was contained in a letter read during Tuesday’s Senate plenary by Senate President Godswill Akpabio. In the correspondence, President Tinubu outlined the strategic importance of the proposed 2025–2026 borrowing plan, which he said targets critical sectors of the economy.
According to the President, the borrowing plan spans sectors such as infrastructure, agriculture, healthcare, education, water supply, economic growth, security, job creation, and monetary reforms.
“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,” Tinubu stated.
He explained that the total loan request includes $21.54 billion, €2.19 billion, and 15 billion Japanese Yen, with an additional €65 million grant. The President stressed that the loans are vital in light of the country’s infrastructure deficit and the financial constraints following the removal of fuel subsidies.
“In view of our significant infrastructure needs and the limited financial resources at our disposal—especially in the wake of declining domestic revenues—there is an urgent need for strategic borrowing to bridge this gap,” he said.
Tinubu assured lawmakers that the funds would be directed towards high-impact projects, particularly in rail transport, healthcare, and developmental initiatives across all 36 states and the Federal Capital Territory. He added that the goal is to stimulate job creation, enhance food security, promote entrepreneurship, and reduce poverty.
In a separate letter, President Tinubu also sought the Senate’s approval to issue ₦757.98 billion in domestic bonds to clear backlogs of pension liabilities under the Contributory Pension Scheme (CPS).
Citing the Pension Reform Act of 2014, Tinubu acknowledged that revenue challenges over the years had hindered full compliance with pension funding obligations, leading to significant arrears and hardship for retirees.
“The Senate is invited to note that the federal government has not consistently met its obligations under the PRA 2014 due to revenue constraints, resulting in accumulated arrears that have placed many retirees in distress,” he said.
He noted that the Federal Executive Council had approved the bond issuance during its February 4, 2025, meeting. The bond, he said, would help improve retirees’ welfare, boost confidence in the pension system, and inject liquidity into the economy.
“This initiative will enable the federal government to meet its pension obligations, restore faith in the system, and enhance the well-being of retirees—helping them afford basic needs, improve healthcare access, and avoid preventable deaths,” he wrote.
The President urged the Senate for a swift and positive response, assuring lawmakers of his administration’s commitment to transparency and accountability.
Senate President Akpabio subsequently referred the requests to the Senate Committee on Local and Foreign Debts for further legislative action, with a report expected within two weeks.
Similarly, a matching letter was sent to the House of Representatives, where Speaker Tajudeen Abbas read it to members. It reiterated the administration’s goal to bridge the infrastructure gap, generate employment, and improve the quality of life for Nigerians through strategic borrowing.
