Tinubu piles up debt with fresh request for $21.5bn, €2.2bn loan
Nigeria’s debts will automatically rise, should the national assembly approve President Bola Ahmed Tinubu’s request for domestic and external borrowings. Tinubu, in one of his letters to the legislature, sought to raise $2 billion through the issuance of foreign currency-denominated financial instruments. President Tinubu said his government would use the funds to clear the backlog of pension arrears, as well as for infrastructure, job creation, and foreign exchange earnings.
In another letter, President Tinubu sought approval to borrow the sums of $21.5bn, €2.2bn externally, 15 billion Japanese yen, and a €65 million in grants – all being part of the government’s 2025–2026 borrowing plan. The President said he would spend the loans on infrastructure, agriculture, health, education, water supply, security, and employment generation.
“These projects were selected based on technical and economic evaluations and are geared toward addressing the country’s infrastructure deficit, reducing poverty, creating jobs, and boosting food security,” the president stated. The projects would spread across the 36 states and the Federal Capital Territory, he added.
Additionally, Tinubu said the borrowing is necessary due to the effects of subsidy removal and dwindling domestic revenues. Equally, he requested the House of Reps “to approve the issuance of FGN bonds worth N757.98 billion in the domestic market to offset outstanding pension liabilities under the Contributory Pension Scheme as of December 31, 2023.”
“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,” Tinubu wrote in his letter.
