President Bola Tinubu has formally requested the Nigerian House of Representatives to approve a comprehensive borrowing plan totaling over $21.5 billion in external loans alongside ₦757.9 billion in domestic bonds. The funds are aimed at addressing Nigeria’s pressing infrastructure deficits and clearing outstanding pension arrears under the Contributory Pension Scheme (CPS). This move comes amid challenging economic realities, including the recent removal of fuel subsidies that have strained government finances.
The borrowing plan, covering the 2025–2026 fiscal years, targets critical sectors such as infrastructure, agriculture, health, education, water supply, security, and employment generation. Tinubu emphasized that the loans and grants, denominated in multiple currencies including USD, EUR, and Japanese Yen, will finance vital national development projects across all states and the Federal Capital Territory, with a focus on transport and healthcare.
Tinubu justified the borrowing by highlighting the country’s significant infrastructure gap and limited financial resources. He described the plan as a prudent strategy to close the funding shortfall and stimulate economic growth through job creation, skill acquisition, poverty reduction, entrepreneurship, and improved food security. The president assured that the proceeds would be carefully managed to enhance the livelihoods of Nigerians.
Separately, the president sought legislative approval for issuing domestic bonds to clear ₦757.9 billion in pension arrears that have accumulated due to government revenue shortfalls. He cited the Pension Reform Act of 2014 and noted that failure to meet pension obligations has caused financial hardship among retirees. The Federal Executive Council had already approved the bond proposal earlier this year.
By clearing the pension arrears, Tinubu stated the government aims to restore retirees’ welfare, rebuild trust in the pension system, and provide an economic liquidity boost. He expressed hope for timely approval from the House of Representatives, emphasizing the importance of this financial intervention for retirees’ wellbeing and the broader pension industry.
Source: Business day