JUST IN: Tinubu seeks NASS Approval for $21.5bn loan ₦758bn Pension Bond
President Bola Ahmed Tinubu has requested the approval of the National Assembly to secure a fresh external loan of over $21.5 billion and issue domestic bonds worth ₦757.9 billion to clear outstanding pension liabilities.
The president made the appeal through three separate letters, which were read on the floor of the House of Representatives on Tuesday by Speaker Tajudeen Abbas.
In one of the letters, Tinubu proposed the creation of a foreign currency-denominated bond issuance programme within Nigeria’s domestic debt market.
He noted that the initiative, to be executed by the Debt Management Office (DMO), aims to raise up to $2 billion.
According to him, this move will attract local dollar-based investments, strengthen Nigeria’s foreign reserves, stabilize the exchange rate, and deepen the financial market.
He explained that the funds raised would be directed toward critical infrastructure projects across the 36 states and the Federal Capital Territory (FCT), with a focus on transportation, healthcare, and other priority sectors.
“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,” Tinubu stated.
The total loan request includes $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, alongside a €65 million grant.
Justifying the loan request, the president cited the economic fallout from the removal of fuel subsidies and emphasized the urgent need to bridge Nigeria’s infrastructure gap despite dwindling revenue.
“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 said.
In a second letter, Tinubu asked the lawmakers to approve the issuance of federal government bonds amounting to ₦757.98 billion.
The funds, he said, would be used to settle pension arrears under the Contributory Pension Scheme as of December 2023.
He acknowledged the government’s struggles to meet its pension obligations due to revenue shortfalls and stressed that clearing the backlog would relieve retirees, restore trust in the pension system, and inject liquidity into the economy.
The bond issuance proposal, he added, had earlier received the Federal Executive Council’s approval on February 4, 2025.
Tinubu appealed for timely legislative action, assuring the lawmakers of transparency and fiscal responsibility in handling the proposed funds.
The House has since referred the president’s requests to the relevant committees, including the Committees on National Planning and Economic Development and Pensions, for further legislative consideration.
This is quite a significant move by President Tinubu to seek approval for such substantial loans and pension bonds. It’s interesting how he highlights the benefits of these initiatives, like attracting local dollar investments and stabilizing the exchange rate. However, I can’t help but wonder if this is the most sustainable approach to addressing Nigeria’s economic challenges. What are the long-term implications for the country’s debt burden? I also appreciate the focus on critical infrastructure and addressing pension arrears, but it’s concerning that revenue shortfalls have made these measures necessary. Do you think these bonds will genuinely improve the lives of Nigerians in the long run, or are they just a temporary fix? I’d love to hear your thoughts on whether this is the right path forward. What alternatives would you suggest to tackle these issues without deepening the debt crisis?