President Bola Tinubu has asked the National Assembly to approve a comprehensive borrowing plan worth trillions of naira. He said the loans are necessary to address the economic disruptions caused by fuel subsidy removal and currency reforms.
In two separate letters presented to the Senate and House of Representatives, the president requested approval for:
- $21.54 billion
- €2.19 billion
- ¥15 billion
- €65 million (as a grant)
- ₦757.98 billion in domestic bonds
According to Tinubu, these funds will finance key infrastructure projects across all 36 states and the Federal Capital Territory. The projects include major investments in rail transportation, healthcare delivery, agriculture, education, water supply, and employment initiatives.
Fuel Subsidy Fallout Cited as Key Rationale
Tinubu acknowledged that while recent reforms are necessary for long-term stability, they have increased short-term hardship. The removal of petrol subsidies and the floating of the naira, he noted, have led to inflation and a rising cost of living.
Consequently, he argued that the proposed loans represent a “strategic response” to cushion these effects and accelerate national development.
“These funds will enable us to build long-overdue infrastructure, support struggling sectors, and stabilize the economy,” a senior government official said.
₦757.98bn to Clear Pension Arrears
In addition to external borrowing, the president also requested approval to raise ₦757.98 billion through domestic bonds. This, he explained, would go toward settling outstanding pension liabilities under the Contributory Pension Scheme (CPS).
Due to past revenue shortfalls, the federal government has accumulated pension arrears, leaving thousands of retirees in financial distress. Tinubu said the bond issuance would help ease their burden and restore public confidence in the national pension system.
Legislative Backing Needed for Implementation
Under Nigerian law, such borrowing plans require legislative approval. The president, therefore, urged the National Assembly to expedite deliberations to avoid delays in executing the proposed projects.
Lawmakers are expected to begin reviewing and debating the requests in the coming days.
This borrowing proposal aligns with Tinubu’s broader reform agenda, which focuses on boosting public investment, creating jobs, and ensuring inclusive economic recovery. If approved, the funds are expected to serve as a fiscal lifeline for Nigeria’s ailing infrastructure and overstretched social programs.