Tinubu Seeks NASS Approval for $23.5 Billion Loan Package to Boost Nigeria's Infrastructure and Economy

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By: The Rev. Uruakpa Onyemaechi Charles

Source: MethodistMedia

President Bola Tinubu has formally requested National Assembly approval for a multi-currency loan of $23.5bn, €2.2bn, ¥15bn, and ₦757.9bn. The loan will support critical infrastructure, economic growth, and pension liabilities in Nigeria.

Overview of the Loan Request

On Tuesday, 27th May 2025, President Bola Ahmed Tinubu submitted a formal request to the National Assembly seeking approval for a substantial multi-currency external borrowing plan. The proposed loan package includes:

  • $23.5 billion USD
  • €2.2 billion EUR
  • ¥15 billion JPY
  • ₦757.9 billion NGN

When converted, the total value approximates ₦45 trillion. This funding will target pivotal sectors of the Nigerian economy, including infrastructure, education, health, agriculture, and employment generation.

Objectives of the Borrowing Plan

The President outlined the following key objectives:

  • Bridge the infrastructure deficit plaguing the country.
  • Address the economic impact of the fuel subsidy removal.
  • Fund pension liabilities through domestic bonds.
  • Drive inclusive economic growth, employment, and poverty alleviation.

Tinubu emphasized that the funds will be ring-fenced and utilized exclusively for approved development projects. Oversight will be managed by the Minister of Finance in collaboration with the National Assembly.

Implementation Strategy & Expected Benefits

1. Capital Raising via Domestic Market

The President is also requesting legislative backing for raising $2 billion in domestic debt as part of the Presidential Executive Order No. 16 (2023), which supports local issuance of foreign currency-denominated financial instruments.

2. Funding Priorities

According to Tinubu, funds will be allocated to:

  • Power, railways, and transportation
  • Healthcare infrastructure
  • Water supply
  • Education & skill acquisition centers
  • Poverty reduction and food security programs

3. Investor Benefits

The Executive Order allows investors to earn returns on their foreign currency funds, while simultaneously strengthening the foreign reserves and stabilizing the exchange rate.

Pension Liabilities: N757.9 Billion Bond Request

Tinubu also presented a separate request for the issuance of ₦757.9 billion in FGN bonds to offset outstanding pension liabilities under the Contributory Pension Scheme (CPS).

Key justifications include:

  • Compliance with the Pension Reform Act 2014
  • Alleviating hardship faced by retirees
  • Settling accrued liabilities as of December 2023

This proposal has already received Federal Executive Council approval (4th February 2025).

Legislative Proceedings and Public Transparency

The borrowing request was read on the Senate floor by Senate President Godswill Akpabio and referred to the Committee on Local and Foreign Debts for scrutiny. A similar procedure was followed in the House of Representatives.

Tinubu highlighted that all borrowing must align with the Fiscal Responsibility Act (2007), which mandates a cost-benefit analysis for every borrowing decision and ensures parliamentary appropriation.

Source of Funds and Repayment Terms

According to Mohammed Manga, Director of Information at the Federal Ministry of Finance, the majority of the funds will come from concessional loans through Nigeria’s development partners:

  • World Bank
  • African Development Bank
  • Islamic Development Bank
  • China Exim Bank
  • JICA
  • French Development Agency
  • European Investment Bank

These institutions offer favorable repayment terms and long tenures, making the plan more sustainable.

Economic Impact and Final Thoughts

President Tinubu concluded by reassuring the nation of his administration’s commitment to:

  • Sustainable debt practices
  • Efficient fund utilization
  • Enhanced transparency and legislative oversight
  • Improved revenue generation through ongoing tax reforms

He stressed that this strategic borrowing plan is not merely about accumulating debt, but about investing in Nigeria’s future, diversifying the economy, and empowering the citizenry.


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© 2025 | Written by The Rev. Uruakpa Onyemaechi Charles for MethodistMedia


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