President Bola Ahmed Tinubu has asked the Senate to greenlight two major financial proposals—an ambitious $21.5 billion external loan to fast-track development across the country and a ₦757.98 billion bond to clear long-standing pension arrears owed to retired public servants.
In separate letters read on the Senate floor on Tuesday by Senate President Godswill Akpabio, Tinubu laid out what his administration calls a “bold and necessary strategy” to fix Nigeria’s ailing infrastructure, ease the pain of fuel subsidy removal, and restore dignity to retirees who have waited years for their dues.
In his request for the $21.54 billion foreign loan and €65 million in grants, Tinubu said the funds would be channelled into projects that span infrastructure, agriculture, health, education, water supply, job creation, and national security—touching all 36 states and the Federal Capital Territory.
“This borrowing is a calculated response to the realities of our fiscal space and the urgent need to close Nigeria’s infrastructure deficit,” the President stated.
“Timely approval by the National Assembly will ensure swift implementation and impact.”
Tinubu acknowledged that the nation’s economic recovery has been slow due to the removal of fuel subsidies and dwindling government revenues. However, he argued that massive investment is the surest way to stimulate growth, create jobs, and deliver essential services.
In a second letter, Tinubu turned attention to Nigeria’s elderly and retired workers—many of whom have suffered in silence over years of unpaid pension entitlements.
To correct this, the President is seeking Senate approval for a ₦757.98 billion bond issuance aimed at settling accrued pension rights under the Contributory Pension Scheme up to December 2023. The proposal, already endorsed by the Federal Executive Council in February, fulfills the government’s obligations under the Pension Reform Act, 2014.
“This is more than a fiscal measure—it’s a moral responsibility,” Tinubu wrote.
“It’s time to reassure retirees that the nation they served will not forget them in old age.”
While the bond issuance will add to Nigeria’s debt stock, the administration insists the move is a long-overdue investment in human capital and social justice.
The two proposals have been referred to the Senate Committee on Local and Foreign Debts for further scrutiny and are expected back on the Senate floor within two weeks. Though early signs point to smooth passage, economists and civic groups have raised red flags about Nigeria’s rising debt burden.
Critics warn that ballooning debt service costs could further strain the country’s fragile economy. But inside the Presidency, the mood remains resolute.
“We are taking bold steps—not reckless ones,” a senior government official told this paper.
“Our goal is to restore trust in governance, accelerate economic growth, and ensure no Nigerian is left behind.”
As the Senate prepares to deliberate, the spotlight is on lawmakers to weigh the cost of inaction against the promise of progress. For Tinubu, the message is clear: the time to act is now—before the cracks in Nigeria’s social and economic fabric grow any wider.
President Bola Ahmed Tinubu
