President Bola Ahmed Tinubu has formally requested the National Assembly’s approval to secure a new external loan exceeding $21.5 billion and issue domestic bonds worth ₦757.9 billion to settle outstanding pension liabilities.
The appeal came through three letters read by Speaker Tajudeen Abbas on the House of Representatives floor Tuesday. One letter proposed establishing a foreign currency-denominated bond issuance program within Nigeria’s domestic debt market, to be managed by the Debt Management Office (DMO). The program aims to raise up to $2 billion by attracting local dollar-based investments, strengthening foreign reserves, stabilizing the exchange rate, and deepening financial markets.
Tinubu said proceeds from the bonds would fund critical infrastructure projects across Nigeria’s 36 states and the Federal Capital Territory, targeting sectors like transportation, healthcare, and other priorities. The president emphasized that the initiative would create jobs, encourage skills development and entrepreneurship, reduce poverty, boost food security, and improve Nigerians’ livelihoods.
The total external loan request includes $21.5 billion, €2.19 billion, 15 billion Japanese yen, and a €65 million grant. Tinubu justified the borrowing by citing the urgent need to close Nigeria’s vast infrastructure gap amid revenue challenges and the economic fallout from the fuel subsidy removal.
In a separate letter, Tinubu sought approval for issuing ₦757.98 billion in federal bonds to clear pension arrears under the Contributory Pension Scheme as of December 2023. He acknowledged government difficulties in meeting pension obligations due to revenue shortfalls and said clearing the backlog would relieve retirees, restore trust in the pension system, and inject liquidity into the economy. This bond issuance plan had already received Federal Executive Council approval on February 4, 2025.
The president urged swift legislative action, assuring lawmakers of transparency and fiscal responsibility in managing the funds. The House has referred the requests to relevant committees, including those on National Planning, Economic Development, and Pensions, for further review.
