Tinubu Seeks NASS Approval for $21.5bn Loan, ₦758bn Pension Bond

 President Bola Tinubu submitted three letters to the National Assembly on May 27, 2025, requesting approval for a $21.5 billion external borrowing plan and a ₦757.98 billion domestic bond issuance to address outstanding pension liabilities under the Contributory Pension Scheme.

The requests, read by House Speaker Tajudeen Abbas, aim to finance critical infrastructure projects, deepen Nigeria’s financial markets, and resolve long-standing pension arrears that have caused hardship for retirees. The borrowing plan also includes €2.19 billion, 15 billion Japanese yen, and a €65 million grant, reflecting a multi-currency approach to funding Nigeria’s economic priorities.

The external borrowing includes a $2 billion foreign currency-denominated bond issuance in the domestic debt market, to be managed by the Debt Management Office (DMO) under a 2023 Presidential Executive Order. Tinubu emphasized that the funds would be channeled into sectors like infrastructure, agriculture, and energy to drive growth, create jobs, and boost foreign exchange inflows.

The bond issuance is expected to provide dollar-denominated investment opportunities for local investors, strengthen foreign reserves, and promote exchange rate stability. The pension bond, approved by the Federal Executive Council on February 4, 2025, aims to clear liabilities accrued as of December 2023, citing the Pension Reform Act of 2014. Tinubu argued that settling these debts would alleviate retirees’ suffering, boost public sector morale, and stimulate economic activity through increased liquidity.

The requests have sparked debate in the National Assembly, with some lawmakers supporting the economic rationale, while others express concerns about Nigeria’s rising debt stock, projected to increase significantly with the new loans. Critics argue that the government must prioritize revenue generation and curb wasteful spending to avoid overburdening future generations. The proposals have been referred to the House Committees on National Planning and Economic Development and Pensions for further review, with Tinubu urging timely approval to ensure implementation. The move reflects Nigeria’s ongoing struggle to balance development needs with fiscal sustainability, amid challenges like inflation and currency depreciation.