President Bola Ahmed Tinubu has formally requested the National Assembly’s approval for an external borrowing plan totaling $21.5 billion, alongside a domestic bond issuance of ₦757.9 billion aimed at settling outstanding pension liabilities. This initiative is part of the 2025–2026 borrowing strategy, focusing on sectors such as infrastructure, agriculture, health, education, water supply, security, and employment generation.
The president emphasized that the proposed borrowing is essential to address the country’s significant infrastructure deficit and the financial shortfall exacerbated by the removal of fuel subsidies. The funds are intended to support critical projects, including railway development, healthcare improvements, and nationwide programs across all 36 states and the Federal Capital Territory.
In addition to the external loan, Tinubu seeks legislative approval to issue federal government bonds in the domestic market to clear accrued pension liabilities under the Contributory Pension Scheme (CPS), amounting to ₦757.9 billion. The president noted that revenue challenges have hindered compliance with statutory pension obligations, leading to arrears and increased hardship for retirees. Settling these liabilities is expected to improve retirees’ welfare, restore confidence in the pension system, and inject liquidity into the economy.
While the government views this borrowing plan as a necessary step to stimulate economic growth and development, critics express concerns over Nigeria’s rising debt profile and the sustainability of additional loans. They caution that increased borrowing without corresponding revenue growth could lead to a debt trap, potentially compromising funding for essential public services.
