Infrastructure: Tinubu seeks NASS approval for $21.5bn loan, ₦758bn pension bond 

President Bola Tinubu has requested the National Assembly’s approval for a new external borrowing plan totaling over $21.5 billion, alongside a ₦757.9 billion domestic bond issuance to offset outstanding pension liabilities under the Contributory Pension Scheme.

The requests were contained in three separate letters transmitted to the National Assembly and read by House Speaker Tajudeen Abbas during plenary on Tuesday.

In the first letter, President Tinubu sought legislative backing to establish a foreign currency-denominated issuance programme in Nigeria’s domestic debt market. Under this initiative, the Federal Government plans to raise up to $2 billion through the Debt Management Office (DMO) in accordance with the 2023 Presidential Executive Order on Foreign Currency Denominated Financial Instruments.

Tinubu said the bond proceeds would be channelled into strategic sectors of the economy to spur growth, boost infrastructure, create jobs, and improve foreign exchange inflows. He added that the programme would also provide dollar-denominated investment options for local investors, deepen the domestic financial market, and support foreign reserves and exchange rate stability.

The external borrowing request covers a total facility of $21.54 billion, €2.19 billion, 15 billion Japanese Yen, and a grant of €65 million. The President explained that the borrowing was essential to bridge Nigeria’s infrastructure gap and ease the economic pressure arising from the removal of fuel subsidy.

“In view of the significant infrastructure deficit in the country and the limited financial resources available, it has become necessary to resort to prudent borrowing to address the shortfall,” Tinubu stated.

He assured lawmakers that the borrowed funds would be deployed to critical infrastructure projects, including railway expansion, healthcare, and development programmes across all 36 states and the Federal Capital Territory (FCT). The overall goal, he noted, is to create jobs, encourage entrepreneurship, reduce poverty, and enhance food security.

Acknowledging concerns about rising public debt, Tinubu admitted the new loans would increase Nigeria’s debt stock and servicing costs but argued the investment in key sectors would yield long-term economic benefits.

In a second letter, the President requested the National Assembly’s approval to issue ₦757.98 billion worth of Federal Government bonds to clear accumulated pension liabilities under the Contributory Pension Scheme as of December 2023.

Citing the Pension Reform Act 2014, Tinubu explained that persistent revenue challenges had hindered the government’s ability to meet its pension obligations in recent years. He emphasized that clearing the backlog would ease the hardship on retirees, restore trust in the pension system, raise morale among workers, and inject liquidity into the economy.

The proposed bond issuance, which received the Federal Executive Council’s endorsement on February 4, 2025, is expected to boost investor confidence while having cost implications related to debt servicing.

“I appeal for your expeditious consideration and approval of this request,” Tinubu wrote, assuring lawmakers of his administration’s commitment to fiscal transparency and responsible governance.

The requests have been referred to the relevant House committees for further legislative scrutiny, including the Committees on National Planning and Economic Development, and Pensions.