Why Tinubu Is Seeking $21.5bn Fresh Loan and ₦758bn Bonds — Inside His Plan for Nigeria

President Bola Ahmed Tinubu has formally requested the National Assembly’s approval to secure a fresh external loan totaling over $21.5 billion and to issue domestic bonds worth ₦757.9 billion. The funds, according to the president, are aimed at clearing outstanding pension liabilities and addressing Nigeria’s critical infrastructure deficit.

The requests were presented to the House of Representatives on Tuesday by Speaker Tajudeen Abbas through three separate letters from the president. One of these proposals includes the creation of a foreign currency-denominated bond issuance programme to be managed by the Debt Management Office (DMO). This programme is expected to raise up to $2 billion from local investors willing to invest in dollar-based assets. The government believes this will help strengthen Nigeria’s foreign reserves, stabilize the exchange rate, and deepen the domestic financial market.

President Tinubu emphasized that the funds raised through these initiatives will be channeled into infrastructure projects across all 36 states and the Federal Capital Territory. Priority sectors include transportation, healthcare, and other critical areas that are vital for economic growth and job creation.

“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as improve the livelihoods of Nigerians,” the president stated in his letters.

The total loan amount requested includes $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, alongside a €65 million grant. Tinubu justified the borrowing by pointing to the economic strain caused by the recent removal of fuel subsidies and the urgent need to close Nigeria’s widening infrastructure gap despite falling government revenues.

“In light of the significant infrastructure deficit and the scarcity of financial resources amid declining domestic demand, prudent economic borrowing has become essential,” he noted.

In a separate letter, Tinubu sought approval for the issuance of ₦757.98 billion in federal government bonds to clear pension arrears under the Contributory Pension Scheme as of December 2023. He acknowledged the government’s challenges in meeting pension obligations due to revenue shortfalls and stressed that settling the backlog would restore retirees’ trust and inject liquidity into the economy.

The bond issuance proposal had previously received approval from the Federal Executive Council in February 2025.

The National Assembly has now referred the president’s requests to relevant committees for detailed review, including those on National Planning, Economic Development, and Pensions.

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