Another N757.9b bond for pension liabilities
By James Adamu
President Bola Tinubu is requesting the Senate to approve the 2025/2026 External Borrowing Rolling Plan, broken down into $21.5billion; €2.2bn ¥15bn; and a grant of €65 million.
The presidential request targets to finance critical projects cutting across various sectors of the economy particularly infrastructure, health, education, water supply, among others.
Tinubu’s request was conveyed to senators in a letter read to them on the floor on Tuesday by the President of the Senate, Sen. Godswill Akpabio.
“The 2025–2026 borrowing plan covers all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security, and employment generation, as well as financial and monetary reforms, among others”, the letter reads in part.
The total loans requested under the external borrowing plan include $21,543,647,912; €2,193,856,324.54; ¥15 billion; and a €65m grant.
Tinubu, who acknowledged the impacts of the fuel subsidy removal on the economy, explained that the loans would be utilised to address areas of challenges.
He noted, “In light of the significant infrastructure deficit in the country and the paucity of financial resources needed to address this gap amid declining domestic demand, it has become essential to pursue prudent economic borrowing to close the financial shortfall.”
Giving senators the assurance that the funds would be judiciously applied in the 36 states and the Federal Capital Territory (FCT), the President added, “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 Nigerians.”
The letter was referred to the Senate Committee on Local and Foreign Debts for further legislative measures within two weeks.
Tinubu also wrote a second letter seeking approval for the issuance of Federal Government’s Bond in the domestic debt market to offset outstanding pension liabilities under the Contributory Pension Scheme.
The bond is in the sum of N 757.9bn.
Tinubu explained that the bond issuance was intended to address long-standing pension arrears and fulfill the government’s commitment to retired public sector employees.
In a third letter, Tinubu asked the Senate to approve the raising of €2bn from the domestic market to support investments in critical sectors of the economy.
Akpabio, while admitting the presidential requests, referred all of them to the Committee on Local and Foreign Debts for scrutiny.
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