Tinubu Seeks National Assembly Approval for $21.5bn Foreign Loans, Bonds to Fund Projects and Pensions

President Bola Ahmed Tinubu has formally approached the National Assembly, seeking approval for new borrowings totalling over $21.5 billion, €2.19 billion, 15 billion Japanese Yen, and a grant of €65 million. These borrowings, according to the President, are essential to support the government’s plans to tackle Nigeria’s critical infrastructure challenges, economic instability, and social welfare concerns amid dwindling financial resources.

The requests were presented in three separate letters, read during plenary sessions by Speaker of the House of Representatives, Tajudeen Abbas, and Senate President Godswill Akpabio. The borrowing proposals cover a comprehensive 2025–2026 External Borrowing Plan, capital grazing initiatives, and an issuance of domestic bonds to fund pensions under the Contributory Pension Scheme.

In the correspondence to lawmakers, President Tinubu stressed that the borrowing plan targets multiple sectors with a focus on infrastructure, agriculture, healthcare, education, water supply, employment creation, security, and key financial reforms. He emphasized that the removal of fuel subsidies has had a significant impact on the economy, necessitating bold financial interventions to cushion its effects and stimulate national growth.

The President stated that the proposed loans would directly fund critical developmental projects across all 36 states and the Federal Capital Territory. These initiatives are designed to promote job creation, encourage skill acquisition, foster entrepreneurship, reduce poverty, and improve food security.

President Tinubu also argued that in the face of Nigeria’s large infrastructure deficit and limited financial resources, pursuing carefully considered borrowings remains the most viable option to fill the fiscal gap. He noted that the borrowings would be used to execute priority projects including railway development and improvements in the healthcare system.

Highlighting the urgency of the matter, the President appealed to the National Assembly for expedited approval to ensure timely implementation and disbursement. He underscored that only through effective project execution could the government fulfil its obligations to the Nigerian people and stabilise the economy.