President Bola Tinubu has formally written to the House of Representatives seeking approval for three major financial proposals involving both external and domestic borrowings worth billions of dollars, euros, and naira.
During Tuesday’s plenary, Speaker Abbas Tajudeen read letters from the president requesting legislative approval for the federal government’s 2025–2026 external borrowing rolling plan, a \$2 billion foreign currency bond issuance in the domestic market, and the issuance of bonds to clear outstanding pension liabilities under the Contributory Pension Scheme (CPS). These actions align with a Presidential Executive Order signed in October 2023.
“This request is made pursuant to Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order, which mandate National Assembly approval for all new borrowings and appropriation of the proceeds,” the president stated.
According to Tinubu, the funds will be invested in critical sectors to drive economic growth, infrastructure development, job creation, and foreign exchange earnings. The strategy aims to diversify government funding sources, stabilize the naira, and deepen the local financial market.
However, he acknowledged that the capital raising will increase Nigeria’s public debt and debt servicing costs.
**\$21.5bn, €2.2bn External Loans for 2025–2026**
In a separate letter, President Tinubu outlined a detailed external borrowing plan for 2025–2026, proposing loans totaling \$21.5 billion, €2.2 billion, 15 billion Japanese yen, and €65 million in grants. These funds are earmarked for priority projects in infrastructure, agriculture, health, education, water supply, security, and employment generation.
“These projects were selected based on technical and economic assessments and are intended to address the country’s infrastructure deficit, reduce poverty, create jobs, and enhance food security,” the president explained.
Most projects will be implemented across Nigeria’s 36 states and the Federal Capital Territory. Citing the impact of subsidy removal and declining domestic revenues, Tinubu stressed the urgent need to bridge the financial gap through prudent external borrowing, targeting sectors such as power, railways, and healthcare.
**Domestic Bond Issuance to Clear Pension Liabilities**
In a third proposal, the president requested the House’s approval to issue Federal Government bonds worth N757.98 billion in the domestic market to clear outstanding pension liabilities under the Contributory Pension Scheme as of December 31, 2023.
He explained that this request arises from the government’s inability to fully comply with certain provisions of the Pension Reform Act (PRA) 2014 over the years due to fiscal constraints.
“This bond issuance will allow the federal government to fulfill its obligations to retirees, restore confidence in the pension system, and improve the welfare of retired public servants,” Tinubu wrote.
He further noted that addressing the pension backlog would boost liquidity in the economy and positively impact public sector morale. The proposal was approved by the Federal Executive Council in February 2025.
All three requests, submitted in line with relevant fiscal and pension laws, have been referred to the House Committee on Finance for further legislative consideration.
