Tinubu seeks NASS approval to borrow over $21 billion to rescue Nigeria’s Economy

President Bola Tinubu has formally requested the approval of the National Assembly for a series of strategic borrowing initiatives aimed at funding key national projects and addressing fiscal shortfalls triggered by dwindling revenues and post-subsidy economic pressures.

In three separate letters read on the House floor by Speaker Tajudeen Abbas, the President outlined proposals for the implementation of three major financing instruments. These include: a $2 billion Capital Grazing Fund, a comprehensive 2025–2026 External Borrowing Plan valued at over $21.5 billion, and the issuance of domestic bonds to offset pension obligations under the Contributory Pension Scheme, totalling ₦757.98 billion.

The external borrowing package also encompasses €2.19 billion, ¥15 billion (Japanese Yen), and a €65 million grant. The loans are expected to support multi-sectoral projects spanning infrastructure, health, education, agriculture, water supply, and economic reforms.

In one of the letters addressed to the House, the President underscored the urgency of bridging Nigeria’s significant infrastructure gap, stressing that the proposed loans would finance priority projects across all 36 states and the Federal Capital Territory. Nigeria: Nigerian fashion

“The 2025–2026 borrowing plan is designed to stimulate job creation, foster entrepreneurship, boost agricultural productivity, and enhance food security,” the letter stated.

“It is a targeted response to the socio-economic impacts of fuel subsidy removal, and a necessary move to stabilise the economy amid constrained domestic revenues.”

Tinubu also argued that the external funds would be channelled into critical sectors including rail development, healthcare systems, and educational improvement, all of which are pivotal to long-term national growth.

“Given the scale of the infrastructure deficit and the financial demands needed to address it, these borrowings are considered prudent and essential.

The requested approvals will ensure timely execution of projects and allow the government to meet its commitments to citizens,” the President added.