According to reports by Vanguard, President Bola Tinubu has formally approached the House of Representatives for approval of a comprehensive borrowing package, which includes over $21.5 billion in external loans and a ₦757.9 billion bond issuance aimed at clearing overdue pension payments.
In a letter to the House, Tinubu outlined the objectives of the proposed 2025–2026 borrowing framework, which targets strategic economic sectors such as infrastructure, agriculture, healthcare, education, water resources, employment, national security, and monetary reform.
The proposed foreign borrowing package comprises $21.54 billion, €2.19 billion, and 15 billion Japanese Yen, alongside a grant of €65 million.
The President stressed that this financial plan is essential to mitigate the effects of the fuel subsidy removal and to address pressing fiscal needs.
He emphasized that the funds would be used to drive significant infrastructure initiatives, particularly in rail transport and healthcare, and to implement development projects across all states and the Federal Capital Territory.
Tinubu added that the goal is to stimulate job creation, support small businesses, reduce poverty, and ensure food security.
In addition to the external borrowing, the President requested legislative backing for the issuance of domestic bonds to pay off pension liabilities accrued under the Contributory Pension Scheme (CPS).
The bonds, totaling nearly N758 billion, are intended to resolve pension arrears caused by past revenue shortfalls.
Citing provisions in the Pension Reform Act of 2014, Tinubu acknowledged the government’s inability to consistently fulfill its statutory pension commitments, resulting in hardship for retirees.
He stated that the Federal Executive Council had approved the bond issuance plan earlier in February 2025.
The President maintained that clearing the pension backlog would not only benefit former public sector workers but also help restore trust in the national pension system and boost liquidity in the economy.
He appealed to the lawmakers to expedite their consideration and approval of the proposals, pledging transparency and responsible management of the funds.
The House has forwarded the President’s request to the relevant committees on National Planning and Economic Development as well as Pensions for detailed review.
SOURCE: fredspot/Opera
