President Bola Ahmed Tinubu has formally approached the House of Representatives, seeking approval for a new external borrowing plan worth over $21.5 billion, alongside a ₦757.9 billion domestic bond issuance intended to address outstanding pension obligations.
In his letter to the Green Chamber, the President outlined the necessity of the proposed 2025–2026 borrowing framework, citing Nigeria’s pressing infrastructure needs and limited financial resources as key drivers behind the request.
“With dwindling revenue and a substantial infrastructure gap, strategic borrowing is imperative to bridge the nation’s financial shortfall,” Tinubu explained, assuring legislators that the funds would be directed toward impactful projects across critical sectors such as rail transport, healthcare, agriculture, and human capital development.
According to Tinubu, the plan is designed to stimulate job creation, support skills development and entrepreneurship, enhance food security, and ultimately improve the standard of living across Nigeria’s 36 states and the FCT.
In a separate proposal, the President also sought legislative consent to float federal bonds valued at over ₦757 billion to offset long-standing pension arrears under the Contributory Pension Scheme (CPS). He acknowledged that revenue challenges had hampered the government’s ability to meet statutory pension commitments, resulting in severe hardship for many retirees.
“The failure to consistently fulfill pension obligations, as outlined in the Pension Reform Act of 2014, has led to distress among our senior citizens,” Tinubu stated, noting that the Federal Executive Council had already approved the bond issuance earlier this year. He emphasized that settling the pension backlog would not only bring relief to retirees but also restore confidence in Nigeria’s pension system and infuse liquidity into the economy.
“Meeting these obligations will improve the well-being of pensioners, reduce health-related risks, and revive trust in the retirement scheme,” the President added. The National Assembly has referred the proposals to its relevant committees, National Planning and Economic Development, and Pensions for detailed scrutiny.
Tinubu ended his appeal by urging swift legislative action, reaffirming his administration’s dedication to responsible borrowing and transparent governance.
