In a significant fiscal policy move, President Bola Ahmed Tinubu has formally requested the National Assembly’s approval for an expansive borrowing initiative involving multi-currency loans and domestic bond issuance. The proposal includes external loans amounting to approximately $23.5 billion, €2.265 billion, ¥15 billion, and N757.9 billion, with an estimated total of N45 trillion when converted to Nigeria’s local currency.
This request represents one of the largest external financing proposals put forward by the current administration, aiming to bolster Nigeria’s economic recovery and infrastructure development. President Tinubu is also seeking legislative backing for the issuance of up to $2 billion in the domestic debt market under the Presidential Executive Order on Foreign Currency-Denominated Financial Instrument Local Issuance Programme.
In addition, the President asked lawmakers to approve the 2025–2026 external borrowing framework designed to support both federal and sub-national development goals. The Director of Information and Public Relations at the Federal Ministry of Finance, Mohammed Manga, clarified in a statement on Tuesday that the debt rolling plan outlines a structured borrowing approach over two years, rather than a sudden increase in national debt.
According to Manga, “the majority of the proposed borrowing will be sourced from Nigeria’s development partners, including the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank. These institutions offer concessional financing with favorable terms and long repayment periods, thereby supporting Nigeria’s development objectives sustainably.”
Simultaneously, the Senate introduced the Ministry of Finance Incorporated (Repeal & Re-enactment) Bill, 2025, which aims to overhaul the legal framework governing the management of Nigeria’s public assets through MOFI.
President Tinubu emphasized that the proposed loans would be directed toward critical sectors such as infrastructure, healthcare, education, agriculture, water supply, and economic reforms. He stated that the proceeds would be ring-fenced and allocated based on recommendations from the Minister of Finance, with National Assembly appropriation.
The President noted, “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.”
He added that investors would benefit from returns on their dollar investments, while the government could channel those funds into high-impact projects, thereby boosting foreign reserves and stabilizing the exchange rate.
The Senate received the request through a letter read on the floor by Senate President Godswill Akpabio. Part of the letter stated:
“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.”
The total loans proposed include $21.5 billion, €2.19 billion, ¥15 billion, and a €65 million grant. The President explained that this financial support would help mitigate the economic challenges that arose following the removal of the fuel subsidy.
“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as to improve the livelihoods of Nigerians,” he said.
The proposal has been forwarded to the Senate Committee on Local and Foreign Debts for further consideration within two weeks.
In a related development, President Tinubu sent a second letter to both chambers seeking approval for the issuance of Federal Government Bonds to offset outstanding pension liabilities totaling N757.9 billion under the Contributory Pension Scheme (CPS). The bond issuance aims to address long-standing pension arrears and fulfill the government’s obligations to retired public servants.
In his letter to the House of Representatives, part of the President’s request read:
“I write to request the kindly approval of the National Assembly for capital raising of up to $2 billion in the domestic debt market toward the implementation of the Presidential Executive Order on Foreign Currency Denominated Financial Instrument Local Issuance Programme and Related Matters Order, 2023 dated October 19, 2023 (Order No. 16 of 2023) by the Debt Management Office (DMO).”
On the pension bond, he added:
“I write to request for the kind approval of the National Assembly for the issuance of Federal Government of Nigeria (FGN) Bonds in the domestic debt market by the DMO to settle outstanding pension liabilities under the CPS as at December 2023 in the sum of N757,983,246,571.”
The President cited relevant provisions in the 1999 Constitution and the Pension Reform Act, 2014, to support his request, including Section 15(4) on pension review rights and Section 82(2) on the Pension Protection Fund.
“The House of Representatives is invited to note that the FGN has not been complying with the implementation of the above provisions of the PRA 2014 over the years due to revenue challenges leading to accumulation of pension arrears with the attendant hardship to retirees,” Tinubu stated.
“To settle the accrued pension liabilities as of December 2023 in the sum of N757,983,246,571.00, the government has decided to raise funds through the issuance of FGN Bonds in the domestic debt market.”
The Federal Executive Council had approved the proposal at its February 4, 2025, meeting.
The President emphasized that each project in the borrowing plan was selected based on rigorous technical and economic evaluations and their potential impact on employment, entrepreneurship, food security, and poverty reduction. He assured that the projects would be implemented across all 36 states and the Federal Capital Territory.
“Given the urgent nature of these needs and the importance of stabilising the economy, it is crucial to seek the consideration and approval of the House of Representative for the 2025–2026 External Borrowing Plan. This will enable the government to fulfill its obligations to the Nigerian people through timely disbursement and effective project implementation.”
Manga reiterated the strategic nature of the debt plan, saying:
“This strategic method enhances Nigeria’s ability to implement effective fiscal policies and mobilise development resources… Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing.”
He concluded that the government remains committed to responsible borrowing, increased revenue generation, and transparency.
“We reaffirm our dedication to fiscal discipline, transparency, and accountability. Constructive public engagement and legislative oversight are vital components of our journey toward long-term economic stability and inclusive national prosperity,” Manga said.
Meanwhile, the Senate’s first reading of the Ministry of Finance Incorporated (Repeal & Re-enactment) Bill, 2025—sponsored by Senator Sani Musa—marks a progressive step towards institutional reform. The legislation aims to modernize MOFI into a commercially-oriented body, optimize government investments, and align asset management with global best practices.
The bill signals a broader national commitment to fiscal responsibility, governance efficiency, and sustainable economic advancement.
