President Bola Tinubu has written to the National Assembly requesting legislative approval for several fresh loans totalling N40.5 trillion amidst a worsening economic climate for the country. 

In three separate letters transmitted to the National Assembly on Tuesday and read by Senate President Godswill Akpabio, Mr Tinubu requested the National Assembly’s approval for the establishment of a foreign currency-denominated issuance programme in the domestic debt market.

Mr Tinubu, in the first letter, sought the legislative approval to raise up to $2 billion through the issuance of foreign currency-denominated financial instruments in Nigeria’s domestic debt market in tandem with a Presidential Executive Order signed in October 2023.

The Nigerian president stated that his request was based on Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and item 1(7) of his executive order, which requires National Assembly approval for all new borrowings and the appropriation of their proceeds.

The president noted that 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 meant to diversify government funding sources, stabilise the naira, and deepen the local financial market.

Mr Tinubu, in the second request, also unveiled the borrowing plan amounting to $21.5 billion, €2.2 billion, 15 billion Japanese yen and a €65 million in grants for the year 2025-2026, stating the loans were expected to fund priority projects in key areas of development such as education, health, agriculture and unemployment.

Mr Tinubu said, “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.

The multi-currency foreign facility totalled about N40.5 trillion at the prevailing exchange rate of N1600 per dollar.

If successful, the latest request would add to a series of foreign loans the administration has procured over the past year. In June 2024, the government borrowed $2.2 billion from the World Bank. Another loan was 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 Nigerian. Majority of these projects and programs will be implemented across all 36 states and the Federal Capital Territory.”

The president noted that the borrowing plan was crucial to enable the government to fulfil its obligations to the Nigerian people through timely disbursement and effective project implementation.

Mr Tinubu also requested that the National Assembly approve the issuance of Nigerian federal bonds worth N757.98 billion in the domestic market to offset outstanding pension liabilities under the Contributory Pension Scheme as of December 31, 2023.

The president stated that the request was critical, following the federal government’s persistent non-compliance with several provisions of the Pension Reform Act (PRA) 2014.

“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,” he wrote.

All the requests have been referred to the House Committee on Finance for further legislative action.

Mr Tinubu’s request came months after he signed the N54.99 trillion 2025 Appropriation Bill into law, stating the 2025 budget was meant to address key areas, including security, infrastructure and education.

The administration has faced difficulties in raising revenues, as tax receipts plummeted amid low investor confidence, which has led to the collapse of many entities in the manufacturing and service sectors. GlaxoSmithKline and Jumia were among dozens of major companies to exit the Nigerian economy since Mr Tinubu assumed office in 2023.