Nigeria’s public debt is poised to surpass N180 trillion following President Bola Tinubu’s request to the National Assembly for approval to secure new external and domestic loans totalling N34.15 trillion.
According to letters addressed to the Senate and House of Representatives, the President is seeking approval for a new external borrowing plan amounting to over $21.5 billion, equivalent to N33.39 trillion at the official exchange rate of N1,590 per dollar. Additionally, he is requesting approval for the issuance of domestic bonds worth N757.9 billion to settle outstanding pension liabilities.
The letters, read during plenary sessions by Senate President Godswill Akpabio and House Speaker Tajudeen Abbas, emphasised the strategic importance of the 2025–2026 borrowing plan, which targets key sectors of the economy.
President Tinubu stated, “The 2025–2026 borrowing plan covers all sectors, with a strong focus on infrastructure, agriculture, health, education, water supply, economic growth, security, job creation, and financial reforms.”
The proposed external borrowing package includes $21.54 billion, €2.19 billion, and 15 billion Japanese Yen, along with a grant of €65 million. Tinubu described the borrowing as necessary, citing the removal of fuel subsidies and the nation’s significant infrastructure deficit.
“In light of limited financial resources and declining domestic demand, it is essential to pursue responsible borrowing to address funding gaps,” he said, assuring lawmakers that the funds will be invested in critical infrastructure such as railways, healthcare, and nationwide development projects across all 36 states and the FCT.
“This initiative will create jobs, support skill acquisition and entrepreneurship, reduce poverty, improve food security, and enhance overall livelihoods,” he added.
In a separate request, Tinubu sought legislative approval to issue domestic bonds worth N757.98 billion to settle pension arrears under the Contributory Pension Scheme (CPS). He noted that due to revenue challenges, the federal government had failed to fulfill some statutory pension obligations, causing hardship for retirees.
“The federal government has struggled to comply with the provisions of the Pension Reform Act 2014, leading to a buildup of pension arrears,” Tinubu explained, adding that the Federal Executive Council had approved the bond issuance during its February 4, 2025 meeting.
He emphasised that settling the arrears would improve retirees’ welfare, restore confidence in the pension system, and inject liquidity into the economy.
“This will ensure retirees can meet their basic needs, improve their health, and avoid unnecessary suffering,” the President stated, urging the National Assembly to expedite approval.
The Senate referred the requests to its committee on local debts, while the House directed them to the committees on national planning, economic development, and pensions for further review.