Tinubu Writes Senate, Seeks Approval for $21.5 Billion Loan, ₦757.9 Billion Pension Bond

President Bola Tinubu has formally requested Senate approval for a new external borrowing plan amounting to over $21.5 billion, alongside a domestic bond issuance of ₦757.9 billion intended to settle outstanding pension liabilities. The request was contained in a letter read during Tuesday’s plenary session by Senate President Godswill Akpabio.

According to the letter, the 2025–2026 borrowing plan covers a broad range of sectors including infrastructure, agriculture, health, education, water supply, security, employment generation, and financial reforms. Tinubu emphasized that the proposed borrowing is critical in addressing Nigeria’s infrastructure deficit and financial shortfalls following the removal of fuel subsidy.

The external facility includes \$21.5 billion, €2.19 billion, and 15 billion Japanese Yen, along with a €65 million grant. The President assured lawmakers that the funds would be allocated to critical infrastructure projects such as railways and healthcare, and would support development programmes across all 36 states and the Federal Capital Territory. The initiative aims to create jobs, promote entrepreneurship, reduce poverty, and enhance food security.

In a separate letter, President Tinubu sought Senate approval for the issuance of federal government bonds in the domestic market to address pension arrears under the Contributory Pension Scheme (CPS). The proposed ₦757.9 billion bond, approved by the Federal Executive Council on February 4, 2025, is aimed at clearing the backlog of pension liabilities, improving retiree welfare, and injecting liquidity into the economy.

Tinubu acknowledged that revenue challenges had previously hindered compliance with the Pension Reform Act 2014, resulting in significant arrears and hardship for retirees. He expressed confidence that settling these liabilities would restore trust in the pension system and provide financial relief to affected pensioners.

The President concluded by urging the Senate to expedite approval of the requests, reaffirming his administration’s commitment to transparency and accountability. The Senate President referred both requests to the Senate Committee on Local Debts for further review, with a report expected in two weeks.