(ICYMI): President Tinubu Seeks Senate Approval Of $21.5bn Loan, N757.9bn Pension Bond
•By Admin
ABUJA – President Bola Tinubu, on Tuesday wrote the Senate seeking approval to borrow the sum of USD 21,543,647,912, EUR 2,193,856,324.54, and 15 billion Japanese Yen, in addition to a grant of 65 million EUR, to boost critical sectors of the economy in the 2025 budget.
Tinubu also asked the Red Chamber to approve the issuance of federal government bonds in the domestic market to settle accrued pension liabilities under the Contributory Pension Scheme, CPS amounting to N757,983,246,572.
A letter read by the Senate President, Godswill Akpabio during plenary explained that the borrowing plan covers all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security, and employment generation, as well as financial and monetary reforms, among others.
According to him, the external loans were captured under the 2025-2026 federal government borrowing plan, adding that the proposed borrowing is crucial in light of the removal of fuel subsidy and its economic implications.
“In light of the significant infrastructure deficit in the country and the paucity 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,” the President stated.
Tinubu further informed that the proposed funds would be channeled into critical infrastructure projects, especially in the areas of railways, healthcare, and nationwide development programmes across all 36 states and the Federal Capital Territory.
He added that the federal government also planned to create employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as to improve the livelihoods of Nigerians with the funds.
On the pension bond, the President lamented that the government had been unable to comply with some statutory pension obligations due to revenue challenges, leading to a buildup of arrears and increasing hardship for retirees.
“The Senate is invited to note that the federal government has not been compliant with the implementation of the above provisions of the Pension Reform Act, PRA 2014 over the years due to revenue challenges leading to accumulation of pension arrears with the attendant ICU retirees,” he stated.
He added that the proposal to issue bonds for the settlement of the liabilities had received approval from the Federal Executive Council in its meeting of February 4, 2025.
Tinubu argued that settling the pension arrears will improve retirees’ welfare, boost confidence in the pension system, and inject liquidity into the economy.
“It will enable the Federal Government of Nigeria to meet obligations under the CPS and restore confidence in the pension industry.
“It will also ensure positive welfare even for the retirees, as this will enable them to meet their basic needs, improve health and avoid untimely death,” the President stressed.
The Senate President referred Tinubu’s request to the Committee on Local and Foreign Debts for further legislative and report back in two weeks.
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