President Bola Ahmed Tinubu has transmitted three letters to the National Assembly, seeking legislative approval for an external borrowing plan of over $21.5 billion and a ₦757.98 billion bond issuance aimed at settling outstanding pension liabilities.
The requests, contained in separate letters read on the floor of the House of Representatives by Speaker Tajudeen Abbas on Tuesday, detail the administration’s plan to mobilize resources for critical infrastructure and social welfare amid prevailing economic challenges.
In one of the letters, Tinubu requested approval for the establishment of a foreign currency-denominated issuance programme in the domestic debt market. The programme, to be managed by the Debt Management Office (DMO), would raise up to $2 billion in line with the Presidential Executive Order on Foreign Currency Denominated Financial Instruments (Local Issues Programme) 2023.
He explained that proceeds from the initiative would support sectors crucial to national development, including infrastructure, employment creation, foreign exchange stability, and investment expansion.
“This initiative will offer dollar-denominated investment opportunities for local investors, deepen our financial markets, strengthen foreign reserves, and promote exchange rate stability,” Tinubu stated.
According to the president, the total external borrowing request includes:
- $21,543,647,912
- €2,193,856,324.54
- ¥15 billion (Japanese Yen)
- Plus a grant of €65 million
Tinubu justified the loans in light of the fuel subsidy removal and its fiscal implications. He said the funds would be directed toward railway development, healthcare, agricultural growth, and other transformative projects across the 36 states and the FCT.
“In light of the significant infrastructure deficit and limited financial resources, prudent external borrowing has become necessary to bridge the funding gap and stimulate inclusive economic growth,” he added.
In a second letter, Tinubu requested approval for the issuance of Federal Government bonds worth ₦757.98 billion to clear outstanding pension liabilities under the Contributory Pension Scheme (CPS) as of December 2023.
Referencing the Pension Reform Act (PRA) 2014, the president acknowledged that previous administrations had struggled to meet pension obligations due to revenue shortfalls. He emphasized that clearing these arrears would restore confidence in the system, uplift retirees, and boost liquidity in the economy.
“This initiative will ease hardship for retirees, enhance trust in our pension system, and improve morale across the public sector workforce,” Tinubu said.
The proposed bond issuance, he noted, received Federal Executive Council (FEC) approval on February 4, 2025, with a clear outline of its benefits and cost implications, including the potential rise in public debt and servicing costs.
He urged the National Assembly to grant prompt approval, reiterating his administration’s commitment to transparency, accountability, and sustainable fiscal management.
“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,” the letter concluded.
The proposals have been referred to the House Committees on National Planning and Economic Development, and Pensions for further legislative review.
