President Bola Tinubu has written to the National Assembly seeking legislative approval for fresh loans amounting to N40.5 trillion.
Tinubu’s request was conveyed in three separate letters transmitted to the National Assembly on Tuesday and read by the Senate President, Godswill Akpabio.
The President, in the first letter, sought the legislative approval to raise up to $2 billion through the issuance of foreign currency-denominated financial instruments in Nigeria’s domestic debt market in tandem with a Presidential Executive Order signed in October 2023.
He contended that his request was based on Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and item 1(7) of his executive order, which requires National Assembly approval for all new borrowings and the appropriation of their proceeds.
He explained that the proceeds would be invested in key sectors of the economy to stimulate growth, infrastructure, job creation, and foreign exchange earnings, adding that the strategy was meant to diversify government funding sources, stabilise the naira, and deepen the local financial market.
Tinubu, in the second request, also unveiled the borrowing plan amounting to $21.5 billion, €2.2 billion, 15 billion Japanese yen and a €65 million in grants for the year 2025-2026, stating the loans were expected to fund priority projects in key areas of development such as education, health, agriculture and unemployment.
He said, “In the light of the removal of the fuel subsidy and its impact on the national economy, approval is called for the borrowing plan, which amounts to USD21,543,647,912, and EUR2,193,856,324.54. And in Japanese Yen, 15 billion Yen and a grant of €65 million, respectively.
“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 Nigerian. Majority of these projects and programs will be implemented across all 36 states and the Federal Capital Territory,” he said.
The president noted that the borrowing plan was crucial to enable the government to fulfil its obligations to the Nigerian people through timely disbursement and effective project implementation.
Tinubu also requested that the National Assembly approve the issuance of Nigerian federal bonds worth N757.98 billion in the domestic market to offset outstanding pension liabilities under the Contributory Pension Scheme as of December 31, 2023.
The president said that the request was critical, following the federal government’s persistent non-compliance with several provisions of the Pension Reform Act (PRA) 2014.
“This bond issuance will enable the federal government to meet its obligations to retirees, restore confidence in the pension system, and improve the welfare of retired public servants,” he wrote.
All the requests have been referred to the House Committee on Finance for further legislative action.
