President Bola Ahmed Tinubu has formally requested the approval of the National Assembly to secure new foreign loans and bond issuances totalling N40.5 trillion, despite previous assurances of improved national revenue and ongoing economic hardship across the country.
The request, delivered in three separate letters read on the Senate floor by Senate President Godswill Akpabio on Tuesday, includes a proposal to establish a foreign currency-denominated issuance programme in Nigeria’s domestic debt market.
In the first letter, President Tinubu sought legislative backing to raise up to $2 billion by issuing foreign currency-denominated financial instruments in the domestic market, as outlined in a Presidential Executive Order signed in October 2023. He cited Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and item 1(7) of the Executive Order as the legal basis for the request.
According to the president, “The proceeds would be invested in key sectors of the economy to stimulate growth, infrastructure, job creation, and foreign exchange earnings,” adding that the strategy was also designed to “diversify government funding sources, stabilise the naira, and deepen the local financial market.”
In his second request, President Tinubu unveiled a massive multi-currency borrowing plan covering 2025 to 2026. The breakdown includes $21.5 billion, €2.2 billion, 15 billion Japanese yen, and an additional €65 million in grants. He said the loans would be used to fund “priority projects in key areas of development such as education, health, agriculture and unemployment.”
“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 USD21,543,647,912, and EUR2,193,856,324.54. And in Japanese Yen, 15 billion Yen and a grant of €65 million, respectively,” Tinubu wrote.
At the prevailing exchange rate of N1,600 to the dollar, the total request is equivalent to about N40.5 trillion.
If approved, this would add to earlier foreign borrowings by the Tinubu administration, including a $2.2 billion loan from the World Bank in June 2024 and another facility secured in December 2024.
“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 Nigerians. Majority of these projects and programs will be implemented across all 36 states and the Federal Capital Territory,” the president noted.
He emphasised that the borrowing was crucial for effective implementation of government programs and timely disbursement of funds for development efforts.
In the third letter, Tinubu also requested approval for the issuance of Nigerian federal bonds worth N757.98 billion in the domestic market to settle 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,” the letter read.
President Tinubu pointed out that the move was essential due to persistent non-compliance with key provisions of the Pension Reform Act (PRA) 2014.
All three loan and bond issuance requests have been forwarded to the House Committee on Finance for further consideration.
This new borrowing initiative comes just months after President Tinubu signed the N54.99 trillion 2025 Appropriation Bill into law, which was presented as a budget focused on security, infrastructure, and education.
However, the administration continues to struggle with declining revenue, a weakened investment climate, and the exit of major companies such as GlaxoSmithKline and Jumia from Nigeria’s economy since Tinubu assumed office in 2023.
