President Bola Tinubu has formally requested the National Assembly’s approval for a new external borrowing plan totaling over $21.5 billion, alongside a ₦757.9 billion bond issuance to address outstanding pension liabilities.
The request was delivered in three separate letters read on the floor of the House of Representatives by Speaker Tajudeen Abbas.
In one letter, Tinubu proposed the establishment of a foreign currency-denominated issuance programme in Nigeria’s domestic debt market. The initiative, involving a $2 billion raise through the Debt Management Office, aims to deepen the country’s financial markets and attract dollar-denominated investments from local investors.
According to the President, the total facility being sought comprises $21.54 billion, €2.19 billion, 15 billion Japanese Yen, and a grant of €65 million. He emphasized that these funds are crucial given the impact of fuel subsidy removal and are intended to support key infrastructure projects across all 36 states and the Federal Capital Territory.
The projects are expected to focus on railway development, healthcare, employment generation, and broader economic growth initiatives.
In a separate correspondence, President Tinubu asked for approval to issue Federal Government bonds worth ₦757.98 billion to offset pension arrears under the Contributory Pension Scheme as of December 2023. Citing the Pension Reform Act of 2014, he explained that the government had struggled with pension obligations due to revenue shortfalls.
He argued that clearing these liabilities would provide relief to retirees, improve public trust in the pension system, and stimulate economic activity by boosting liquidity.
The proposed bond issuance has already received the green light from the Federal Executive Council, and President Tinubu assured lawmakers of transparency in its implementation.
The requests have been forwarded to the relevant House Committees for further legislative action.
