Tinubu Moves to Borrow Over $21bn, Raise ₦758bn to Pay Pensioners

President Bola Tinubu of Nigeria has formally requested the approval of the National Assembly for a new external borrowing plan totaling over \$21.5 billion and a domestic bond issuance of ₦757.9 billion aimed at settling outstanding pension liabilities.

The requests were conveyed through three separate letters addressed to the National Assembly and read by Speaker Tajudeen Abbas on the floor of the House of Representatives on Tuesday, May 27.

In the first letter, Tinubu proposed the establishment of a foreign currency-denominated issuance programme in the domestic debt market, targeting up to \$2 billion. This initiative, to be executed by the Debt Management Office, falls under the framework of the Presidential Executive Order on Foreign Currency Denominated Financial Instruments, Local Issues Programme, 2023.

According to the President, the loan proceeds will be invested in critical infrastructure, with a focus on transportation, healthcare, employment creation, and foreign exchange stability. He emphasized the programme would also offer dollar-based investment opportunities for local investors and help shore up Nigeria’s foreign reserves.

The total external borrowing request includes \$21.5 billion, €2.19 billion, 15 billion Japanese Yen, and a €65 million grant.

Justifying the move, Tinubu pointed to the impact of fuel subsidy removal and the country’s widening infrastructure gap, noting that the proposed borrowing is necessary to stimulate the economy and address urgent national development needs.

“The borrowing will help drive job creation, entrepreneurship, food security, and improved livelihoods across Nigeria,” he said.

In a separate letter, Tinubu sought approval for a ₦757.98 billion bond issuance to clear backlogged pension liabilities under the Contributory Pension Scheme as of December 2023. He cited provisions in the 2014 Pension Reform Act and acknowledged that the federal government had struggled with pension obligations due to fiscal constraints.

“The settlement of these liabilities will ease the hardship faced by retirees, restore public trust in the pension system, and inject liquidity into the economy,” Tinubu added.

The President admitted that both borrowing plans would increase the national debt and servicing costs but assured lawmakers of transparency and accountability in implementation.

The proposals have been forwarded to the relevant committees — including those on National Planning, Economic Development, and Pensions — for further legislative consideration.