ABUJA – President Bola Tinubu has requested Senate approval for a new external borrowing plan exceeding $21.5 billion, alongside the issuance of a ₦757.9 billion domestic bond to address outstanding pension liabilities.
The President’s formal request was conveyed in a letter read during Tuesday’s plenary by Senate President Godswill Akpabio. Tinubu emphasised that the borrowing plan, covering the 2025–2026 fiscal period, is designed to support critical sectors including infrastructure, agriculture, health, education, water supply, financial reforms, and employment generation.
“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,” Tinubu stated in the letter.
The borrowing plan comprises loans totalling $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, in addition to a €65 million grant.
Citing the removal of fuel subsidies and the country’s infrastructure deficit, the President said the loans are necessary to bridge Nigeria’s financial shortfall and stimulate economic recovery. He assured lawmakers that the funds would be deployed into vital infrastructure projects 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,” Tinubu noted.
In a separate request, President Tinubu sought the Senate’s consent for the issuance of domestic bonds amounting to ₦757.9 billion. The funds, he said, would be used to clear pension arrears under the Contributory Pension Scheme (CPS), in line with the Pension Reform Act of 2014.
He acknowledged the government’s inability to meet statutory pension obligations in recent years due to revenue challenges, resulting in hardship for retirees.
“The federal government has not been compliant with the implementation of the above provisions of the PRA 2014… leading to accumulation of pension arrears with the attendant ICU retirees,” Tinubu said.
The bond proposal, which has already been approved by the Federal Executive Council in February, aims to improve the welfare of retirees, inject liquidity into the economy, and restore confidence in the pension system.
The President appealed for expedited consideration, reiterating his administration’s commitment to transparency and accountability.
Senate President Akpabio referred both requests to the Senate Committee on Local and Foreign Debts, which is expected to submit its report in two weeks.
