President Bola Tinubu has approached the National Assembly seeking approval for the request of a $21.5 billion foreign loan.
The President said the proposed borrowing aims to bolster the nation’s fiscal capacity amid ongoing economic reforms.
Tinubu formally requested the National Assembly’s consent for the $21.5 billion foreign loan was contained in a letter read by the Speaker of the House of Representatives, Hon. Tajudeen Abbas.
In the letter, Tinubu emphasized that the loan is necessary to bridge Nigeria’s budget deficit and finance key sectors like power, transportation, and healthcare.
He also added that the $21.5 billion foreign loan is critical to sustaining economic growth, creating jobs, and improving living standards.
The $21.5 billion loan, alongside €2.19 billion, ¥15 billion (Japanese Yen), and a €65 million grant, forms part of the 2025-2026 External Borrowing Rolling Plan.
The letter reads in part: “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, among others.
“In light of the significant infrastructure deficit in the country and the paucity of financial resources needed to address this gap amid declining domestic demand, it has become essential to pursue prudent economic borrowing to close the financial shortfall.
“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as to improve the livelihoods of Nigerians,” he emphasised.
On a separate note, Tinubu also sought the House’s approval for the issuance of Federal Government bonds in the domestic market to settle accrued pension liabilities under the Contributory Pension Scheme (CPS) amounting to ₦757,983,246,572.
Citing the Pension Reform Act 2014, Tinubu noted that the government had been unable to comply with some statutory pension obligations due to revenue challenges, leading to a buildup of arrears and increasing hardship for retirees.
Tinubu stated: “The House of Representatives is invited to note that the federal government has not been compliant with the implementation of the above provisions of the PRA 2014 over the years due to revenue challenges leading to accumulation of pension arrears with the attendant ICU retirees.
“It will enable the Federal Government of Nigeria to meet obligations under the CPS and restore confidence in the pension industry. “It will also ensure positive welfare even for the retirees, as this will enable them to meet their basic needs… improve health and avoid untimely death,” the letter stated.
After the letter was read, the Speaker referred the President’s request to the House Committee on National Planning and Economic Development and the Committee on Pensions for further legislative action.
