President Bola Ahmed Tinubu has written to the National Assembly, seeking approval for a new external borrowing plan totalling $21.5 billion and a domestic bond issuance of N757.9 billion to settle outstanding pension liabilities.
Tinubu, in a letter read at Tuesday’s resumed plenary by Senate President Godswill Akpabio and Speaker Abbas Tajudeen, said the 2025–2026 borrowing plan covers all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security, and employment generation, as well as financial and monetary reforms, among others.
He said the total facility sought under the external borrowing plan includes $ 21,543,647,912, EUR 2,193,856,324.54, 15 billion Japanese Yen, and a 65 million EUR grant.
Tinubu noted that the proposed borrowing was crucial given the removal of the fuel subsidy and its economic implications.
“In light of the significant infrastructure deficit in the country and the paucity of financial resources needed to address this gap amid declining domestic demand, it has become essential to pursue prudent economic borrowing to close the financial shortfall,” he stated.
Tinubu added that the proposed funds would be channelled into critical infrastructure projects, especially railways, healthcare, and nationwide development programs in all 36 states and the Federal Capital Territory.
“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as to improve the livelihoods of Nigerians,” he stated.
In another letter, Tinubu sought legislative approval to issue Federal Government bonds in the domestic market to settle accrued pension liabilities under the Contributory Pension Scheme (CPS) amounting to N757,983,246,572.
Citing the Pension Reform Act 2014, Tinubu noted that the government had been unable to comply with some statutory pension obligations due to revenue challenges, leading to a buildup of arrears and increasing hardship for retirees.
“The House of Representatives is invited to note that the federal government has not been compliant with the implementation of the above provisions of the PRA 2014 over the years due to revenue challenges leading to the accumulation of pension arrears with the attendant ICU retirees,” he stated.
According to the president, the proposal to issue bonds to settle the liabilities received approval from the Federal Executive Council in its meeting on February 4, 2025.
He said settling the pension arrears will improve retirees’ welfare, boost confidence in the pension system, and inject liquidity into the economy.
“It will enable the Federal Government of Nigeria to meet obligations under the CPS and restore confidence in the pension industry.
“It will also ensure positive welfare even for the retirees, enabling them to meet their basic needs, improve health and avoid untimely death,” the letter read.
The requests were referred to the relevant House committees for further legislative action.
