President Bola Tinubu has written to the senate, requesting approval for a new external borrowing plan totalling over $21.5 billion.
Tinubu is also seeking the red chamber’s green light to issue federal government bonds worth N757.9 billion to settle outstanding pension liabilities under the contributory pension scheme (CPS).
The request was contained in two separate letters read during plenary on Tuesday by Senate President Godswill Akpabio.
Tinubu said the proposed external borrowing is part of the federal government’s 2025–2026 borrowing plan, which focuses on key sectors of the economy.
“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,” the letter read.
The president noted that the total external facility being sought includes $21,543,647,912, €2,193,856,324.54, and ¥15 billion, in addition to a €65 million grant.
He said the loans are necessary to address Nigeria’s infrastructure deficit and economic shocks occasioned by the subsidy removal.
“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,” Tinubu said.
The president said the funds would be invested in critical national projects, including railways, healthcare and other infrastructure that span the 36 states and the federal capital territory (FCT).
“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as to improve the livelihoods of Nigerians,” he said.
‘N757.9 BILLION AIMS TO CLEAR PENSION ARREARS’
In a separate letter, Tinubu asked the senate to approve the issuance of government bonds in the domestic market to settle CPS liabilities.
He said the request, totalling N757,983,246,572, is aimed at clearing backlogs caused by the federal government’s inability to fully implement the provisions of the Pension Reform Act (PRA) 2014.
“The Senate 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 letter reads.
Tinubu said the proposal to issue bonds for this purpose has been approved by the federal executive council (FEC) at its meeting on February 4, 2025.
Tinubu said the move would improve the welfare of retirees and boost liquidity in the economy.
“It will enable the federal government of Nigeria to meet obligations under the CPS and restore confidence in the pension industry,” he said.
“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.”
Tinubu urged the senate to give expedited consideration to both requests, pledging transparency and accountability in the utilisation of the funds.
“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,” he wrote.
Akpabio referred both requests to the senate committee on local and foreign debts for further legislative action.
The committee is expected to report back to the senate within two weeks.
