President Bola Tinubu has asked the House of Representatives to approve a fresh external loan of $21.5 billion and a domestic bond issuance of ₦757.9 billion to cover unpaid pension liabilities.
- Loan spans infrastructure, agriculture, education, health, and monetary reforms
- Cites post-subsidy pressures and urgent infrastructure deficits
- Bond issuance targets unpaid pension arrears under the 2014 Pension Reform Act
- Federal Executive Council approved the bond request on February 4, 2025
- House committees on National Planning and Pensions to review the request
This is one of Tinubu’s boldest fiscal moves yet, aimed at funding critical infrastructure and reviving the pension system after years of arrears. But with public debt already a hot-button issue, many will question the timing and sustainability of this request.
While Tinubu argues the borrowing is necessary for national development and social welfare, it also exposes the administration’s deepening reliance on debt amidst falling revenues. Settling pension backlogs may restore faith in the CPS, but at what future cost?
All eyes are on the House as it reviews Tinubu’s request. With concerns over rising debt stock and inflation, lawmakers’ decisions could trigger intense political and public reactions.
