By Haruna Salami
President Bola Tinubu has requested the National Assembly to approve the Federal Government’s proposed $21.5 billion external borrowing plan for the 2025–2026 fiscal period for programmes and projects.
In a similar vein President Tinubu also requested National Assembly approval of ₦757.98 billion bond issuance to clear outstanding pension liabilities under the Contributory Pension Scheme.
In letters read by the Senate President Godswill Akpabio at plenary on Tuesday, Tinubu said “We are looking at requests for approval of the federal government 2025 to 2026 external borrowing rolling plan in the total facility and projects and programmes under the borrowing rolling plan of U.S. $21.5 billion and Japanese Yen, 15 billion and grant of 65 million euros respectively.
Tinubu urged the Senate that, “in the light of the removal of the fuel subsidy and its impact on the national economy, he “emphasize that the projects and programmes included in the borrowing plan were selected based on total technical and economic evaluations, as well as their anticipated contributions to the socioeconomic development of the country.
“These initiatives aim to generate employment, promote skill acquisition, and improve the economic situation, foster entrepreneurship, reduce poverty, and enhance food security, all of which will improve the livelihoods of the average Nigerian. The majority of these projects and programs will be implemented across all the 36 states of the Federation and the Federal Carrier Territory, in light of the significant infrastructure deficit in the country and the vast financial resources needed to support the development of the country.
The requests were conveyed in two separate letters read on the Senate and House of Representatives floors during Tuesday’s plenary session by Senate President Godswill Akpabio and Speaker, Tajudden Abbas.
In the Senate, both proposals were referred to the Senate Committee on Local and Foreign Debts for consideration and are expected to be returned to the chamber within two weeks.
In his first letter, President Tinubu said the borrowing plan was necessary to finance critical projects in infrastructure, agriculture, health, education, water supply, security, and employment generation. He noted that the projects were selected following rigorous technical and economic evaluations.
“The total facility for the projects and programmes under the borrowing rolling plan is estimated at $21.54 billion, with an additional €65 million in grants. The funds will support key infrastructure across all 36 states and the FCT,” the President stated.
He said the external loan request is in response to pressing fiscal challenges arising from fuel subsidy removal and declining domestic revenues, adding that the funds will be used to close Nigeria’s infrastructure gap and boost economic recovery.
“It is crucial to obtain the approval of the National Assembly to enable timely disbursement and effective implementation of the listed projects,” he said.
In the second correspondence, President Tinubu requested legislative backing for the issuance of Federal Government of Nigeria (FGN) bonds worth ₦757,983,246,571 to settle accrued pension liabilities as of December 31, 2023.
He said the request aligns with the provisions of the Pension Reform Act (PRA) 2014, which mandates the Federal Government to fund past pension rights and contribute to the Pension Protection Fund.
“Due to revenue challenges over the years, the government has been unable to meet its obligations, leading to the accumulation of pension arrears and hardship among retirees,” the letter noted.
According to the President, the proposed bond issuance had already received the approval of the Federal Executive Council at its meeting on February 4, 2025, and now requires legislative endorsement in accordance with the Fiscal Responsibility Act, 2007.
He highlighted the social and economic benefits of the proposal, including improved welfare for retirees, restored confidence in the pension system, and increased liquidity in the economy.
“This is an essential investment in human capital development. It will reassure public servants of the government’s commitment to meeting pension obligations,” Tinubu added.
However, he acknowledged that the bond issuance would increase the country’s public debt stock and raise debt service obligations.
Both letters concluded with the President urging the Senate to give expedited approval to the requests to ensure effective implementation and fulfillment of the government’s commitments to citizens.