President Seeks Approval of $21.5bn in External Borrowing Plan, Bond Issuance of N757.9bn

The House of Representatives has received a formal request from President Bola Tinubu for the legislative approval of a new external borrowing plan of over $21.5 billion. More so, the president included a request for a domestic bond issuance of ₦757.9 billion to settle outstanding pension liabilities.

The written communique was detailed when read out at the Green Chamber. The President said that “The 2025–2026 borrowing plan covers all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security, and employment generation, as well as financial and monetary reforms, among others.”

• $21.5 Billion External Loan Request:
  • Aimed at funding infrastructure and other priority sectors.
  • Part of the revised 2025–2026 external borrowing plan.
• ₦758 Billion Domestic Bond Issuance:
  • Intended to clear unpaid pensions under the Contributory Pension Scheme.
  • Will fulfill commitments to retired public sector workers.
• Additional $2 Billion Domestic Loan Request:
  • Targeted at supporting investments in critical sectors.
• Loan Breakdown (from revised borrowing plan):
  • $21.5 billion (USD)
  • €2.2 billion (EUR)
  • ¥15 billion (Japanese Yen)
  • €65 billion grant
• All requests were referred to the Senate Committee on Local and Foreign Debts, with a report expected in two weeks.

The President’s requests were formally presented to the House of Representatives for further consideration. The message from the president takes into account the current infrastructure deficit in the country.

The funds would be essential in solving the stagnated financial situation. He said, “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.”