Tinubu Seeks Over $21.5bn Loan, ₦757.9bn Bond to Tackle Pension Backlog
Nigeria’s President Bola Tinubu has submitted a comprehensive financial proposal to the House of Representatives, requesting approval for an extensive external borrowing framework exceeding $21.5 billion, alongside authorisation for domestic bond issuance worth ₦757.9 billion to address accumulated pension obligations.
During Tuesday’s legislative session, lawmakers received correspondence from the President outlining his administration’s 2025–2026 borrowing strategy, which prioritises critical economic sectors across the nation.
“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,” the President wrote.
The comprehensive financing framework encompasses $21 billion, €2.1 billion, and ¥15 billion, supplemented by a €65 million grant component.
According to the President’s correspondence, current economic circumstances—particularly the elimination of fuel subsidies and their widespread fiscal consequences—have created the need for this borrowing initiative.
“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,” he wrote.
The President provided assurance that borrowed funds would support critical infrastructure development, with particular focus on transportation networks, healthcare facilities, and national development initiatives spanning Nigeria’s 36 states and the Federal Capital Territory.
“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as improve the livelihoods of Nigerians,” he emphasised.
Additionally, Tinubu has requested parliamentary support for domestic bond issuance to resolve outstanding pension obligations under the Contributory Pension Scheme (CPS), totalling ₦757,983,246,572.
Referencing the Pension Reform Act of 2014, the President noted that insufficient revenue generation has prevented the government from fulfilling its statutory responsibilities, resulting in accumulated arrears and financial difficulties for pensioners.
“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 the accumulation of pension arrears with the attendant impact on retirees in intensive care units (ICUs),” he stated.
The President confirmed that the Federal Executive Council endorsed the bond proposal during its 4 February 2025 meeting.
Tinubu emphasised that resolving these arrears would enhance retiree welfare, rebuild confidence in Nigeria’s pension framework, and inject much-needed liquidity into the broader economy.
“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 outcomes for retirees, as this will enable them to meet their basic needs, improve health, and avoid untimely death,” the letter stated.
“While I look forward to the progression and timely approval by the House of Representatives, please accept, Honourable Speaker, the assurances of my highest regards,” he urged.
