183
By Racy Moses
President Bola Ahmed Tinubu has formally asked the National Assembly to approve a new external borrowing plan worth over $21.5 billion, alongside a fresh domestic bond issuance of ₦757.9 billion to address outstanding pension liabilities under the Contributory Pension Scheme.
The president’s proposals were presented in three separate letters read during Tuesday’s plenary by Speaker of the House of Representatives, Hon. Tajudeen Abbas.
In one of the communications, Tinubu sought parliamentary consent for the issuance of a foreign currency-denominated bond, targeting up to $2 billion to be raised through Nigeria’s local debt market. The initiative, to be implemented by the Debt Management Office (DMO), stems from the 2023 Executive Order on Foreign Currency Denominated Financial Instruments (Local Issuance Programme).
According to the president, proceeds from the bond would be channelled into key economic sectors, particularly infrastructure, employment generation, foreign exchange stability, and general economic growth. He also noted that the move would strengthen the local financial market, boost the country’s foreign reserves, and support naira stability.
The broader borrowing request includes a package of $21.54 billion, €2.19 billion, 15 billion Japanese Yen, and a €65 million grant. President Tinubu described the loan as essential to Nigeria’s economic recovery following the removal of fuel subsidies and the widening infrastructure gap. “With limited revenue and mounting demand for public services, responsible borrowing has become necessary to bridge the funding shortfall,” he stated.
He assured lawmakers that the loan would finance strategic projects across the country, including railway development, healthcare infrastructure, poverty alleviation, youth empowerment, and food security initiatives in all 36 states and the Federal Capital Territory.
In a separate letter, the president also sought legislative endorsement to issue ₦757.98 billion in bonds to clear accumulated pension arrears up to December 2023, in line with the provisions of the 2014 Pension Reform Act. Tinubu acknowledged that revenue shortfalls in previous years had made it difficult for the government to fulfill its pension commitments. He said addressing the backlog would ease the hardship of retirees, rebuild confidence in the pension system, and stimulate economic activity by injecting liquidity into the economy.
Although the proposed bond would raise the national debt profile, the president argued that the long-term socioeconomic gains outweighed the fiscal costs. He also disclosed that the Federal Executive Council approved the proposal on February 4, 2025. Tinubu appealed for prompt legislative action on the matter, reaffirming his administration’s dedication to transparent and accountable governance.
The Speaker referred the requests to the House Committees on National Planning and Economic Development, and Pensions, for in-depth review and recommendations.
[5/27, 4:14 PM] Queen 4 Jesus: Tinubu Seeks NASS Nod for $21.5bn Loan, ₦757.9bn Pension Bond
By Racy Moses
President Bola Ahmed Tinubu has formally asked the National Assembly to approve a new external borrowing plan worth over $21.5 billion, alongside a fresh domestic bond issuance of ₦757.9 billion to address outstanding pension liabilities under the Contributory Pension Scheme.
The president’s proposals were presented in three separate letters read during Tuesday’s plenary by Speaker of the House of Representatives, Hon. Tajudeen Abbas.
In one of the communications, Tinubu sought parliamentary consent for the issuance of a foreign currency-denominated bond, targeting up to $2 billion to be raised through Nigeria’s local debt market. The initiative, to be implemented by the Debt Management Office (DMO), stems from the 2023 Executive Order on Foreign Currency Denominated Financial Instruments (Local Issuance Programme).
According to the president, proceeds from the bond would be channelled into key economic sectors, particularly infrastructure, employment generation, foreign exchange stability, and general economic growth. He also noted that the move would strengthen the local financial market, boost the country’s foreign reserves, and support naira stability.
The broader borrowing request includes a package of $21.54 billion, €2.19 billion, 15 billion Japanese Yen, and a €65 million grant. President Tinubu described the loan as essential to Nigeria’s economic recovery following the removal of fuel subsidies and the widening infrastructure gap. “With limited revenue and mounting demand for public services, responsible borrowing has become necessary to bridge the funding shortfall,” he stated.
He assured lawmakers that the loan would finance strategic projects across the country, including railway development, healthcare infrastructure, poverty alleviation, youth empowerment, and food security initiatives in all 36 states and the Federal Capital Territory.
In a separate letter, the president also sought legislative endorsement to issue ₦757.98 billion in bonds to clear accumulated pension arrears up to December 2023, in line with the provisions of the 2014 Pension Reform Act. Tinubu acknowledged that revenue shortfalls in previous years had made it difficult for the government to fulfill its pension commitments. He said addressing the backlog would ease the hardship of retirees, rebuild confidence in the pension system, and stimulate economic activity by injecting liquidity into the economy.
Although the proposed bond would raise the national debt profile, the president argued that the long-term socioeconomic gains outweighed the fiscal costs. He also disclosed that the Federal Executive Council approved the proposal on February 4, 2025. Tinubu appealed for prompt legislative action on the matter, reaffirming his administration’s dedication to transparent and accountable governance.
The Speaker referred the requests to the House Committees on National Planning and Economic Development, and Pensions, for in-depth review and recommendations.