By Admin
President Bola Ahmed Tinubu In his letter to the National Assembly on Tuesday, has sought approval for a new external borrowing plan totaling $21.5 billion, €2.2 billion, ¥15 billion, and a €65 million grant. He also requested legislative approval for the issuance of domestic bonds worth N757.9 billion to clear outstanding pension liabilities.
This combined borrowing plan would increase Nigeria’s debt stock by over N38 trillion, adding further strain to the country’s already burdened loan servicing obligations amid naira devaluation and limited revenue generation.
In his communication—read separately by Senate President Godswill Akpabio and House Speaker Abbas Tajudeen—Tinubu outlined the strategic objectives of the 2025–2026 borrowing framework, emphasizing investment in critical sectors.
“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 president stated.
He explained that the borrowing was made necessary by the removal of fuel subsidy and its broad economic implications.
“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 wrote.
According to the President’s correspondence to both chambers of the National Assembly, the borrowing request includes an external loan of over $21.5 billion, which converts to ₦33.39 trillion using the official exchange rate of ₦1,590 per dollar.
The borrowing proposal spans the 2025–2026 fiscal period and targets critical sectors including infrastructure, health, education, agriculture, water resources, security, and job creation..
Tinubu urged lawmakers to expedite consideration of his requests, pledging transparency and accountability from his administration.
The Senate referred the proposals to its Committee on Foreign and Domestic Loans, while the House directed them to the Committee on National Planning and Economic Development and the Committee on Pensions. The Senate committee is expected to report back in two weeks.
