President Bola Ahmed Tinubu has requested the approval of the National Assembly to secure a fresh external loan of over $21.5 billion and issue domestic bonds worth ₦757.9 billion to clear outstanding pension liabilities.
The president made the appeal through three separate letters, which were read on the floor of the House of Representatives on Tuesday by Speaker Tajudeen Abbas.
In one of the letters, Tinubu proposed the creation of a foreign currency-denominated bond issuance programme within Nigeria’s domestic debt market.
He noted that the initiative, to be executed by the Debt Management Office (DMO), aims to raise up to $2 billion.
According to him, this move will attract local dollar-based investments, strengthen Nigeria’s foreign reserves, stabilize the exchange rate, and deepen the financial market.
He explained that the funds raised would be directed toward critical infrastructure projects across the 36 states and the Federal Capital Territory (FCT), with a focus on transportation, healthcare, and other priority sectors.
“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,” Tinubu stated.
The total loan request includes $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, alongside a €65 million grant.
Justifying the loan request, the president cited the economic fallout from the removal of fuel subsidies and emphasized the urgent need to bridge Nigeria’s infrastructure gap despite dwindling revenue.
“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,” he said.
In a second letter, Tinubu asked the lawmakers to approve the issuance of federal government bonds amounting to ₦757.98 billion.
The funds, he said, would be used to settle pension arrears under the Contributory Pension Scheme as of December 2023.
He acknowledged the government’s struggles to meet its pension obligations due to revenue shortfalls and stressed that clearing the backlog would relieve retirees, restore trust in the pension system, and inject liquidity into the economy.
The bond issuance proposal, he added, had earlier received the Federal Executive Council’s approval on February 4, 2025.
Tinubu appealed for timely legislative action, assuring the lawmakers of transparency and fiscal responsibility in handling the proposed funds.
The House has since referred the president’s requests to the relevant committees, including the Committees on National Planning and Economic Development and Pensions, for further legislative consideration.
