The President asked for permission to issue up to $2 billion in foreign currency bonds within Nigeria’s domestic debt market, in line with an executive order signed in October 2023

By Titilope Adako

President Bola Ahmed Tinubu has requested the House of Representatives to approve major borrowing plans amounting to over $21 billion, €2.2 billion, and N758 billion for various national projects and obligations.

In letters read on the House floor by Speaker Tajudeen Abbas on Tuesday, Tinubu sought legislative backing for a $2 billion foreign currency bond issuance in the domestic market, a comprehensive 2025–2026 external borrowing plan, and a bond issuance to offset pension arrears.

$2bn Domestic Bond to Boost Economy

The President asked for permission to issue up to $2 billion in foreign currency bonds within Nigeria’s domestic debt market, in line with an executive order signed in October 2023.

He explained that the proceeds would be channelled into infrastructure, job creation, economic growth, and boosting foreign exchange earnings.

While acknowledging the impact on the nation’s debt profile, Tinubu said the bond would help deepen the financial market and stabilise the naira.

$21.5bn, €2.2bn External Loans for Infrastructure, Health, and Jobs

In a separate request, Tinubu outlined a foreign borrowing plan totalling $21.5 billion, €2.2 billion, 15 billion yen, and €65 million in grants for priority projects in all 36 states and the FCT.

He said the loans would be used to fund infrastructure, agriculture, education, water, health, power, security, and job creation projects.

He argued that the borrowing was necessary to bridge the funding gap caused by subsidy removal and declining domestic revenue.

N758bn Bond to Settle Pension Backlog

Tinubu also requested approval for a N757.98 billion bond issuance to clear unpaid pension liabilities under the Contributory Pension Scheme as of 31 December 2023.

He stated that the move would fulfil obligations to retirees, restore confidence in the pension system, and enhance liquidity and morale in the public sector.

The House referred all three requests to its Committee on Finance for further legislative scrutiny.

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