Tinubu Seeks NASS Approval for Fresh Loans of $21.5bn, €2.19bn, ¥15bn, €65m Grant
President Bola Ahmed Tinubu has formally requested the approval of the National Assembly (NASS) for $21.5 billion External Borrowing Plan for 2025-2026 as well as a $2 billion Foreign Currency Denominated Bond Program.
The presidency, in a separate letter to both chambers of the National Assembly and read by Senate President Godswill Akpabio and Speaker Abbas Tajudeen during Tuesday’s plenary.
The Speaker, while reading the three letters, observed that the series of significant financial initiatives were aimed at stabilising the economy, funding critical infrastructure and addressing long-standing pension liabilities.
On the request for $21.5 billion External Borrowing Plan for 2025-2026, President Tinubu presented the Federal Government’s 2025-2026 External Borrowing Rolling Plan totaling $21.54 billion, €2.19 billion, and ¥15 billion (Japanese Yen), alongside a €65 million grant.
According to him, the proposed borrowing plan will focus on critical sectors including infrastructure, agriculture, health, education, water resources, security, and financial management reforms.
He explained that the projects and programmes under the plan had undergone technical and economic evaluations and were chosen for their potential to spur job creation, boost food security, improve livelihoods, and address Nigeria’s infrastructure deficit.
President Tinubu added that the borrowings had become necessary following the removal of fuel subsidies, fiscal constraints, and declining domestic revenues.
On the $2 billion Foreign Currency Denominated Bond Programme, President Tinubu sought the National Assembly’s approval for the establishment of a foreign currency-denominated issuance programme in the domestic debt market.
According to him, the proposed $2 billion would be implemented by Debt Management Office (DMO) in line with the Presidential Executive Order on Foreign Currency Denominated Financial Instruments, Local Issues Program, 2023.
The President emphasized that the proceeds from the bond would be deployed into critical sectors of the economy capable of driving growth, enhancing infrastructure, creating employment, and boosting foreign exchange inflows.
He also noted that this initiative would offer dollar-denominated investment opportunities for local investors, deepen Nigeria’s financial market, and strengthen foreign reserves while promoting exchange rate stability.
However, Tinubu acknowledged that the program would increase Nigeria’s public debt stock and servicing costs.
N758bn Pension Bond
In the same vein, President Tinubu sought approval for the issuance of Federal Government of Nigeria bonds totalling N757.98 billion to settle outstanding pension liabilities under the Contributory Pension Scheme (CPS) as of December 2023.
Referencing the provisions of the Pension Reform Act (PRA) 2014, Tinubu noted that the government had struggled to meet its pension obligations over the years due to revenue challenges.
He stressed that settling the outstanding liabilities would alleviate hardship for retirees, restore confidence in the pension system, boost morale among public servants, and stimulate economic growth by increasing liquidity.
The President explained that the proposed bond issuance had received Federal Executive Council (FEC) approval on February 4, 2025, and highlighted both the benefits and cost implications, including the expected increase in public debt stock and debt servicing obligations.
While calling for accelerated approval, President Tinubu urged the House to give prompt consideration and approval to the requests, citing the pressing need to stabilize the economy, fulfill government obligations, and improve the welfare of Nigerian Citizens.
Akpabio, while admitting the presidential requests, referred all of them to the Committee on Local and Foreign Debts for scrutiny.
