President Bola Tinubu has asked the House of Representatives to approve a major external loan plan worth over $21.5 billion, along with a pension bond of ₦757.9 billion aimed at clearing outstanding pension arrears. The request was made through an official letter sent to the lawmakers and read on the floor of the House in Abuja.
According to the President’s communication, the loan and bond proposal form part of the 2025–2026 national borrowing plan. Tinubu noted that the funding is urgently needed to address Nigeria’s growing economic needs and to close the gap caused by recent policy changes, particularly the removal of fuel subsidy.
The external borrowing package includes a total of $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, along with a €65 million grant. Tinubu stated that the funds will target projects across infrastructure, agriculture, health, education, water access, economic growth, national security, job creation, and financial reforms.
“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 explained.
The letter also explained that the proposed loans will be used to complete several key infrastructure projects. These include railway construction, healthcare improvements, and other development efforts spread across Nigeria’s 36 states and the Federal Capital Territory. The President added that these initiatives are expected to support job creation, training, entrepreneurship, food security, and better living standards.
In a separate request, Tinubu asked the House to approve the issuance of government bonds worth ₦757.9 billion. These funds will be used to pay unpaid pension entitlements under the Contributory Pension Scheme. He noted that economic challenges had caused the federal government to delay its statutory pension payments over the years, creating hardship for many retirees.
“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,” the President wrote.
He further noted that the Federal Executive Council approved the pension bond plan at its February 4, 2025 meeting. Tinubu said that settling these debts will not only help pensioners meet their basic needs but also improve confidence in the country’s pension system and increase financial liquidity in the 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 even for the retirees, as this will enable them to meet their basic needs… improve health and avoid untimely death,” the letter stated.
