President Bola Tinubu has asked the National Assembly to approve a new external loan of over $21.5 billion and a ₦757.9 billion pension bond to pay outstanding pension debts.
Tinubu made the requests in three letters sent to the lawmakers on Tuesday. The Speaker of the House of Representatives, Tajudeen Abbas, read the letters during a plenary session.
In one of the letters, Tinubu asked for approval to raise up to $2 billion through foreign currency bonds in the local market. He explained that this would help fund key projects and support the economy.
“The funds will go into areas that will grow the economy, improve infrastructure, create jobs, and increase our foreign exchange earnings,” the president said.
He also said the plan would give local investors a chance to invest in dollar-based assets, make Nigeria’s financial market stronger, and help stabilize the exchange rate.
Tinubu added that the full loan request includes $21.5 billion, over €2.1 billion, 15 billion Japanese Yen, and a €65 million grant. He said these funds are needed because the removal of fuel subsidies has created financial challenges.
“In light of the infrastructure deficit and lack of funds, borrowing wisely is necessary to fill the gap,” Tinubu told lawmakers.
He promised that the money would be used for important projects like railway development, healthcare, and other programmes in all 36 states and the Federal Capital Territory.
“This will help create jobs, build skills, support small businesses, reduce poverty, and improve food security,” he said.
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However, he admitted that the new loans would add to Nigeria’s total debt and increase the cost of debt repayment.
In a second letter, Tinubu asked the lawmakers to approve the issuance of ₦757.98 billion in government bonds to pay outstanding pension debts under the Contributory Pension Scheme as of December 2023.
He said the delay in pension payments was due to revenue problems, but settling the debts would bring relief to retirees, build trust in the pension system, and increase spending in the economy.
“This will boost the morale of public workers and encourage trust in the system,” he noted.
Tinubu said the pension bond plan had already been approved by the Federal Executive Council in February 2025. He urged lawmakers to act quickly and promised transparency and accountability.
The National Assembly has referred the requests to relevant committees, including those on National Planning and Economic Development, and Pensions, for further review.