Tinubu Seeks NASS Approval for $21.5bn Loan, N757.9bn Bond

The external loan request is aimed at financing critical projects across various sectors of the economy, particularly infrastructure, health, education, and water supply, was read on the floor of the Senate during plenary on Tuesday.

It has been referred to the Senate Committee on Local and Foreign Debts for further legislative scrutiny, with a report expected within two weeks.

In a separate request, President Tinubu also sought the Senate’s authorisation for the issuance of federal government bonds in the domestic debt market to settle outstanding pension liabilities under the Contributory Pension Scheme (CPS)

The proposed bond issuance amounts to N757.9 billion.

The CPS is a retirement savings initiative established under the Pension Reform Act 2004, later revised in 2014, mandating employers and employees to contribute towards an employee’s retirement savings to ensure financial security upon retirement. It is shared 10 per cent by the employers and 8 per cent by the employee’s monthly.

According to the President’s letter, the bond issuance is intended to address long-standing pension arrears and fulfil the government’s commitment to retired public sector workers.

Additionally, the President has requested Senate approval to raise $2 billion from the domestic market to support investments in critical sectors of the economy.

This request has also been referred to the Committee on Local and Foreign Debts for consideration within two weeks.

Earlier, President Tinubu wrote to the House of Representatives, requesting approval for the revised 2025–2026 external borrowing plan.

Under the plan, the President is seeking to borrow $21.5 billion, €2.2 billion, ¥15 billion Japanese (Yen), and a €65 billion grant.

According to the letter, which was read on the floor of the House by the Speaker, the loans are intended to address the country’s infrastructure deficit and improve employment, among other objectives.

To settle outstanding pension liabilities, the President is also requesting approval to borrow N757.98 billion from the domestic market.