President Bola Tinubu has written to the House of Representatives, seeking its 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 resumed plenary on Tuesday by Speaker Abbas Tajudeen, said the 2025–2026 borrowing plan covered 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.
The President said the total facility sought under the external borrowing plan includes USD 21,543,647,912, EUR 2,193,856,324.54, and 15 billion Japanese Yen, in addition to a grant of 65 million EUR.
Tinubu noted that the proposed borrowing was crucial in light of the removal of 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 channeled into critical infrastructure projects, especially in the areas of railways, healthcare, and nationwide development programmes across 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 for the issuance of 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 accumulation of pension arrears with the attendant ICU retirees,” he stated.
According to the president, the proposal to issue bonds for the settlement of the liabilities had received approval from the Federal Executive Council in its meeting of 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, as this will enable them to meet their basic needs, improve health and avoid untimely death.
“While I look forward to the progression and timely approval of the House of Representatives, please accept, Your Honourable Speaker, the assurances of my high regards,” the letter reads.
The requests were referred to the relevant House committees for further legislative action.
