JUST IN: Tinubu Makes Fresh Move To Take $21bn Loan, ₦758bn Pension Bond

• President Tinubu formally requested the National Assembly’s approval for over $21.5bn in external loans and a ₦757.9bn pension bond issuance
• The $2bn foreign currency bond will fund key sectors like infrastructure, healthcare, and job creation, aiming to stabilise Nigeria’s economy and exchange rates
• The ₦758bn pension bond seeks to clear outstanding pension liabilities, restore retirees’ confidence, and stimulate economic growth amid revenue challenges

FCT, Abuja - President Bola Tinubu on Tuesday formally requested the National Assembly’s approval for a fresh external borrowing plan totaling over $21.5 billion, alongside a domestic bond issuance of ₦757.9 billion aimed at settling outstanding pension liabilities.

The letters were read on the floor of the House of Representatives by Speaker Tajudeen Abbas, marking the start of legislative scrutiny for the proposed financial moves.

$2bn foreign currency bond issuance to boost economy

In one letter, Tinubu sought approval for a foreign currency-denominated issuance programme in the domestic debt market.

The Debt Management Office would implement the programme, issuing up to $2 billion in line with the 2023 Presidential Executive Order.

The president emphasised that proceeds would be invested in critical sectors such as infrastructure, healthcare, and job creation to drive economic growth and stabilise foreign exchange reserves.

“This initiative will also offer dollar-denominated investment opportunities for local investors, deepen our financial markets, and promote exchange rate stability,” Tinubu said.

External borrowing plan includes multiple currencies

The total external borrowing plan includes USD 21.54 billion, EUR 2.19 billion, 15 billion Japanese Yen, and a 65 million Euro grant.

Tinubu highlighted the urgency of borrowing due to the removal of fuel subsidy and the nation’s large infrastructure deficit.

“Prudent economic borrowing is essential to close the financial gap amid declining domestic revenue,” he stated.

₦758bn pension bond to clear liabilities

In a separate letter, Tinubu requested approval for ₦757.98 billion in bonds to settle outstanding pension obligations under the Contributory Pension Scheme as of December 2023.

Referencing the Pension Reform Act of 2014, he noted the federal government’s revenue constraints had hindered timely pension payments, causing hardship for retirees.

Settling these liabilities, Tinubu said, would restore confidence in the pension system, boost morale among civil servants, and stimulate economic growth.

Lawmakers urged to approve promptly

The president appealed for the National Assembly’s timely approval, assuring transparency and accountability in managing the funds.

The requests have been referred to the Committees on National Planning and Economic Development, and Pensions for detailed review.

“I look forward to your favourable consideration and timely approval,” Tinubu concluded his letters.

Tinubu meets FIRS boss as Wike strikes in Abuja

Previously, Legit.ng reported President Bola Tinubu held a high-level meeting with the chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, at the presidential villa in Abuja on Monday, May 26.

The meeting between the president and Adedeji came shortly after the officials of Nyesom Wike-led federal capital territory administration (FCTA) sealed off the office of FIRS at the Zone 5 area of Abuja following the allegation of not paying ground rent for the past 25 years.

Source: Legit.ng