President Bola Tinubu has formally requested the House of Representatives to approve a new external borrowing plan totaling over $21.5 billion, along with a domestic bond issuance of ₦757.9 billion aimed at clearing outstanding pension liabilities under the Contributory Pension Scheme (CPS).
In a letter addressed to Speaker Tajudeen Abbas and read on the House floor, Tinubu said the proposed borrowing forms part of the Federal Government’s 2025–2026 borrowing plan.
The facility, he explained, targets critical sectors such as infrastructure, agriculture, health, education, water supply, employment generation, national security, and financial reforms.
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“The borrowing plan covers all sectors with particular focus on projects that can boost growth and improve the welfare of Nigerians,” the President stated.
Details of the proposal include $21,543,647,912, €2,193,856,324.54, and 15 billion Japanese Yen in loans, alongside a €65 million grant.
Tinubu described the funding as essential for plugging the country’s infrastructure gap and cushioning the economic impact of fuel subsidy removal.
The President assured that the loans would be invested in transformative projects, including railway expansion, healthcare facilities, and large-scale development initiatives across the 36 states and the Federal Capital Territory (FCT).
In a separate request, Tinubu asked for legislative endorsement to issue domestic bonds worth ₦757,983,246,572 to settle pension arrears under the CPS, citing longstanding revenue shortfalls that have hindered full implementation of the Pension Reform Act 2014.
“The federal government has been unable to meet key pension obligations, resulting in accumulated arrears and hardship for retirees,” Tinubu noted.
He added that the bond issuance had already been approved by the Federal Executive Council at its February 4, 2025 meeting, and would not only resolve outstanding pension liabilities but also boost retirees’ welfare and inject liquidity into the economy.
“This will restore trust in the pension system and ensure that our retirees live with dignity and security,” the President emphasized.
The House has referred the proposals to its Committees on National Planning and Economic Development, and Pensions, for further legislative action.
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