President Tinubu is on a mission to secure Senate approval for an ambitious financial strategy that includes a staggering $21.5 billion loan and a $2 billion bond program. This bold move aims to bolster Nigeria’s economic landscape and set the stage for future growth.
President Bola Tinubu has formally requested the National Assembly's approval for a $21.5 billion external borrowing plan for 2025-2026, along with a $2 billion foreign-currency-denominated bond program. This was outlined in three separate letters read during Tuesday's plenary session by Senate President Godswill Akpabio and Speaker of the House of Representatives Abbas Tajudeen.
In his request, President Tinubu described these measures as critical financial interventions aimed at stabilizing the economy, improving infrastructure, and addressing long-standing liabilities. He noted that the borrowing became necessary due to the removal of fuel subsidies, declining domestic revenues, and the need to support key government programs.
"I write to kindly request the approval of the National Assembly for the capital raising of up to $2 billion in the domestic debt market. This is towards the implementation of the Presidential Executive Order on foreign currency-denominated financial instruments, which includes the local insurance program and related matters—Order 2023, dated October 19, 2023."
These initiatives aim to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, all of which will improve the livelihoods of the average Nigerian.
Most of these projects and programs will be implemented across all 36 states of the federation and the Federal Capital Territory. Given the significant deficit in the country and the vast financial resources needed to address this gap amidst declining domestic funding, it has become essential to pursue prudent external borrowing to close the financial shortfall.
These funds will primarily be directed towards critical infrastructure projects, including sectors such as power, railways, and healthcare, among others.
Considering the urgent nature of these needs and the importance of stabilizing the economy, it is crucial to seek the Senate's consideration and approval for the 2025-2026 external borrowing plan.
