ABUJA, Nigeria — President Bola Tinubu has formally requested Senate approval for a new external borrowing plan amounting to over $21.5 billion, alongside the issuance of N757.9 billion in domestic bonds to clear pension arrears owed under the contributory pension scheme (CPS).
The twin requests were conveyed in two letters read on the Senate floor on Tuesday, May 27, 2025, by Senate President Godswill Akpabio.
According to the president, the external loans form part of Nigeria’s 2025–2026 borrowing strategy and are aimed at funding infrastructure, agriculture, health, education, water supply, and security, among other sectors.
“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,” the president stated.
The financing request includes $21.5 billion, €2.19 billion, and ¥15 billion in loans, alongside a €65 million grant.
Tinubu said the borrowing would help cushion economic shocks from the removal of fuel subsidies and support vital projects across the country.
“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,” the letter read.
Tinubu said the funds would be invested in critical national projects, including railway development, healthcare upgrades, and other infrastructure needs spread across all 36 states and the Federal Capital Territory.
The president emphasised that the investments would “generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security.”
In a separate letter, Tinubu requested legislative backing for the issuance of N757.98 billion in domestic bonds to settle longstanding arrears under the CPS.
The bonds are aimed at offsetting unpaid entitlements due to revenue constraints that hindered full compliance with the Pension Reform Act of 2014.
“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,” the letter stated.
Tinubu said the bond proposal was approved by the Federal Executive Council at its meeting on February 4, 2025.
He added that resolving the pension backlog would improve retirees’ welfare and boost liquidity in the economy.
“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,” he wrote.
The Senate President referred both requests to the Senate Committee on Local and Foreign Debts for further scrutiny.
The committee is expected to submit its report within two weeks.
