President Bola Tinubu has formally requested approval from the National Assembly for a new $21.5 billion external loan and a ₦758 billion domestic bond to fund critical sectors and address outstanding pension liabilities.
The requests were detailed in separate letters sent to both the Senate and the House of Representatives, and were read during plenary sessions on Tuesday. The proposals have now been referred to the Senate Committee on Local and Foreign Debts for further legislative action, with a report expected within two weeks.
According to President Tinubu, the $21.5 billion loan will be used to finance key infrastructure projects, as well as initiatives in health, education, and water supply across Nigeria.
In addition, Tinubu has asked the Senate to approve the issuance of Federal Government bonds worth ₦757.98 billion in the domestic debt market. These funds will be used to settle pension arrears under the Contributory Pension Scheme. The President also requested approval to raise an additional $2 billion from the domestic market to support investments in critical sectors of the economy.
Earlier, Tinubu had written to the House of Representatives to seek approval for the revised 2025–2026 external borrowing plan. According to the letter read by the Speaker, the borrowing plan includes $21.5 billion, €2.2 billion, ¥15 billion Japanese yen, and a €65 billion grant. The loans, Tinubu said, are aimed at addressing Nigeria’s infrastructure deficit, improving employment, and boosting economic growth.
He reiterated his request to borrow ₦757.98 billion from the domestic market to offset outstanding pension liabilities.
According to the latest figures from the Debt Management Office (DMO), Nigeria’s total public debt stood at ₦144.6 trillion as of December 31, 2024. A breakdown of the figures shows that external debt accounted for ₦70.2 trillion, while domestic debt amounted to ₦74.3 trillion.
Of this total, the Federal Government is responsible for ₦62.9 trillion in external debt and ₦70.4 trillion in domestic debt, while state governments owe ₦7.3 trillion externally and ₦3.9 trillion domestically.
Stay tuned to Alayo Radio TV for updates on this developing story.