President Bola Ahmed Tinubu has approached the National Assembly for approval to secure a new external loan package exceeding $21.5 billion and to issue domestic bonds worth ₦757.9 billion. The loan and bond requests are aimed at financing key infrastructure projects and settling longstanding pension arrears owed to Nigerian retirees.
The president’s appeal was formally conveyed through three separate letters read aloud during Tuesday’s plenary session of the House of Representatives by Speaker Tajudeen Abbas.
Creation of Dollar-Denominated Bonds in Domestic Market
In one of the letters, President Tinubu proposed the establishment of a foreign currency-denominated bond issuance programme within Nigeria’s domestic debt framework. This initiative, to be executed by the Debt Management Office (DMO), seeks to raise up to $2 billion from local investors who hold dollar assets.
According to the president, the programme is designed to boost Nigeria’s foreign reserves, stabilize the naira, encourage foreign currency inflows from within the country, and deepen the domestic financial market. The funds raised from this initiative will be channeled toward financing critical national infrastructure.
He highlighted that these investments will prioritize vital sectors such as transportation, healthcare, and other strategic areas across all 36 states and the Federal Capital Territory (FCT).
“This initiative is expected to stimulate job creation, promote entrepreneurship, reduce poverty, enhance food security, and ultimately improve the living standards of Nigerians,” the president noted in the correspondence.
Breakdown of the Loan Request
The total external loan request comprises $21.5 billion, €2.19 billion, and 15 billion Japanese Yen. It also includes a €65 million grant component. The funding is expected to be sourced from multilateral and bilateral financial institutions and development partners.
President Tinubu explained that the loan is necessary to cushion the economic impact of recent reforms, particularly the removal of fuel subsidies, which has led to increased fiscal pressures. He underscored the importance of bridging Nigeria’s significant infrastructure deficit, which he described as a major barrier to sustainable economic growth.
“In the face of limited revenue and urgent development needs, borrowing remains a responsible and strategic tool for financing capital projects that will yield long-term economic benefits,” Tinubu stated.
Pension Arrears: ₦757.9 Billion Bond Proposal
In a separate letter, President Tinubu requested the lawmakers’ approval to issue federal government bonds worth ₦757.98 billion. The proceeds, he said, would be directed toward clearing pension liabilities under the Contributory Pension Scheme (CPS) up to December 2023.
He acknowledged that revenue shortfalls have hampered the government’s ability to meet its pension obligations, resulting in significant delays and hardship for many retirees. Tinubu emphasized that settling the pension arrears would restore confidence in the pension system, provide relief to pensioners, and inject needed liquidity into the economy.
The bond issuance plan had previously been endorsed by the Federal Executive Council on February 4, 2025.
Call for Swift Legislative Support
President Tinubu concluded his correspondence by urging the National Assembly to act promptly on the requests, assuring lawmakers that the funds would be managed with the utmost transparency, accountability, and fiscal discipline.
Following the reading of the letters, the House of Representatives referred the proposals to the appropriate committees—including those on National Planning and Economic Development, and Pensions—for detailed review and further legislative action.
Post a Comment