Despite the celebrations that greeted the news of paying off a large part of loans owed the International Monetary Fund (IMF) recently, Nigeria is getting more enmeshed in further borrowing as President Bola Tinubu yesterday transmitted three letters to the National Assembly requesting legislative approval for a new external borrowing plan amounting to over $21.5 billion, and a domestic bond issuance of N757.9 billion to settle outstanding national pension liabilities.

The fresh loan is expected to balloon the country’s debt stock to an all time high of $117.73 billion, according to available records as it already owes about $94.23 billion. Tinubu made these requests in three separate letters transmitted to the National Assembly, which were read on the floor of the House of Representatives by the Speaker, Tajudeen Abbas.

The requests also include ¥15 billion (Japanese Yen) and €65 million in grants. The borrowing plan forms part of Nigeria’s 2022–2024 borrowing framework and the upcoming 2025–2027 Medium-Term External Borrowing Plan.

He also sought approval for the issuance of government bonds to the tune of N757,983,246,571.00 to settle outstanding pension liabilities under the contributory pension scheme.

Tinubu further requested approval for capital raising of up to $2.00 billion in the domestic debt market to the implementation of the Presidential Executive Order on Foreign Currency Denominated Financial Instrument Local Issuance Programme and Related Matters Order 2023.

In the first letter titled: “Request for approval of federal government 2025-2026 external borrowing (rolling), the President said: “I write in reference to the above subject and to submit the attached Federal Government 2025-2026 External Borrowing Rolling Plan for consideration and early approval of the National Assembly to ensure prompt implementation of the projects.

“The House of Representatives is invited to note that the 2025-2026 Borrowing Plan cuts across all sectors with specific emphasis on infrastructure, agriculture, health education, water supply, growth, security, and employment generation, as well as Financial Management Reforms, amongst others.

Total facility of the projects and programmes under the Borrowing (Rolling) Plan is USD 21,543,647,912 and €2,193,856,324.54 & JPY 15,000,000,000.00 and Grant of €65,000,000.00 respectively, and the summary of the breakdown is attached.

“The House of Representatives, in light of the removal of the fuel subsidy and its impact on the national economy, approval is sought for the External Borrowing Plan, which amounts to USD 21,543,647,912 and €2,193,856,324.54 & JPY 15,000,000,000.00 and Grant of €65,000,000.00.

“I want to emphasise that the projects and programmes included in the Borrowing Plan were selected based on thorough technical and economic evaluations, as well as their anticipated contribution to the socio-economic development of the country.”