President Bola Tinubu has requested the backing of the National Assembly for a new round of borrowing aimed at stabilising Nigeria’s economy and addressing key infrastructure and pension challenges.
The request, laid out in three separate letters read on the floor of the House of Representatives by Speaker Tajudeen Abbas, outlines plans for substantial foreign and domestic borrowing.
In one of the letters, the president proposed the establishment of a foreign currency-denominated issuance programme within Nigeria’s local debt market. This initiative, which would be managed by the Debt Management Office (DMO), is expected to raise $2 billion under the provisions of the Presidential Executive Order on Foreign Currency Denominated Financial Instruments, Local Issues Programme of 2023.
According to Tinubu, the aim is not merely to borrow but to create local opportunities for dollar-denominated investments, deepen the financial market, and stabilise the foreign exchange system. He stated that “the proceeds will be channelled into critical sectors of the economy capable of driving growth, enhancing infrastructure, creating employment, and boosting foreign exchange inflows.”
The proposal includes a broader external borrowing plan that totals $21.54 billion, €2.19 billion, and 15 billion Japanese Yen, along with a grant of €65 million. The president emphasised the urgent need for this facility in light of the economic strain caused by fuel subsidy removal and other fiscal adjustments.
“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 explained.
Tinubu assured the legislature that the funds would be used to deliver large-scale infrastructure projects, with a focus on transportation, healthcare, and other development programs in all 36 states and the Federal Capital Territory. He added that “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.”
While acknowledging the likely increase in the nation’s public debt and the cost of servicing it, the president argued that the long-term benefits outweigh the risks.
In a separate letter, Tinubu also asked for approval to issue federal government bonds amounting to ₦757.98 billion to clear outstanding pension liabilities under the Contributory Pension Scheme as of December 2023.
‘Meeting pension responsibilities’ – Tinubu
Referring to the Pension Reform Act of 2014, Tinubu noted that the government has long struggled to meet pension obligations due to revenue challenges. He argued that paying off the pension arrears would bring significant social and economic relief.
“Settling the outstanding liabilities would alleviate hardship for retirees, restore confidence in the pension system, boost morale among public servants, and stimulate economic growth by increasing liquidity,” he said.
The bond issuance had earlier received Federal Executive Council approval in February 2025. Tinubu also flagged the cost implications, particularly the impact on public debt stock and servicing obligations, but assured lawmakers of his administration’s dedication to transparency.
“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 in conclusion.
The proposals have been referred to the House Committees on National Planning and Economic Development and Pensions for further legislative consideration.
