President Tinubu Requests $21.5bn Loan Approval to Fix Economy
President Bola Tinubu has formally asked the National Assembly to approve a loan package of over $21.5 billion aimed at revitalizing Nigeria’s struggling economy and funding key development projects.
In three separate letters read aloud by Speaker Tajudeen Abbas on the House floor, the President detailed plans for borrowing that include a $2 billion Capital Grazing Fund, a broad external borrowing plan for 2025–2026 exceeding $21.5 billion, and domestic bond issuance of ₦757.98 billion to cover pension obligations under the Contributory Pension Scheme.
The external borrowing proposal also features loans in multiple currencies — including €2.19 billion, ¥15 billion, and a €65 million grant — intended to support critical sectors such as infrastructure, healthcare, education, agriculture, water supply, and economic reforms.
In one letter, President Tinubu highlighted the urgent need to close Nigeria’s vast infrastructure gap, explaining that the loans would fund priority projects across all 36 states and the Federal Capital Territory.
“The 2025–2026 borrowing plan is designed to stimulate job creation, foster entrepreneurship, boost agricultural productivity, and enhance food security,” the letter said.
It described the borrowing as a direct response to the socio-economic challenges caused by the fuel subsidy removal and stressed its necessity to stabilize the economy amid shrinking domestic revenues.
Tinubu emphasized that the funds would be invested in critical areas such as rail development, healthcare, and education — all essential for Nigeria’s long-term growth.
“Given the scale of the infrastructure deficit and the financial demands needed to address it, these borrowings are considered prudent and essential. The requested approvals will ensure timely execution of projects and allow the government to meet its commitments to citizens,” the President added.
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