President Bola Tinubu has requested approval of the National Assembly to access borrowings amounting to billions of dollars.
He requested approval to borrow 21.5 billion dollars, EUR 2.1 billion and 15 billion yen. It also seeks a grant of 65 million euros.
Tinubu noted that the fresh borrowings are to finance government projects in view of dwindling financial constraints.
The requests are contained in separate letters read on the Senate floor by Senate President Godswill Akpabio and on the floor of the House of Representatives by Speaker Tajudeen Abbas on Tuesday.
also includes a request for approval for the issuance of domestic bonds to fund retirees’ pensions through the Contributory Pension scheme.
The President said in his letter: “In the light of the removal of the fuel subsidy and its impact on the national economy, approval is called for the borrowing plan, which amounts to USD 21,543,647,912, and EUR 2,193,856,324.54. And in Japanese Yen, 15 billion Yen and grant of 65 million, respectively.
“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as to improve the livelihoods of Nigerian. Majority of these projects and programs will be implemented across all 36 states and the Federal Capital Territory.
“In light of the significant infrastructure deficit in the country and the power 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.
“These funds will primarily be directed towards critical infrastructural projects, including railways, healthcare among others. Given the market nature of these needs and the importance of stabilizing the economy, it is crucial to seek the consideration and approval of the House of Representatives for the 2025-2026 External Borrowing Plan.
“This will enable the government to fulfill its obligations to the Nigerian people through timely disbursement and effective project implementation.”
President Tinubu also sought approval for the issuance of Federal Government of Nigeria bonds totalling ₦757.98 billion to settle outstanding pension liabilities under the Contributory Pension Scheme (CPS) as of December 2023.
