Despite Settling IMF Debt, Nigeria Hastily Returns To Borrowing Ways Under Tinubu
• President asks for permission to embark on three types of fund raising
By PHC Telegraph
President Bola Tinubu…goes for foreign and domestic borrowing to pursue his dream.
President Bola Ahmed Tinubu may have celebrated what was regarded as a feat following the payment of debts owed to the International Monetary Fund, IMF, weeks after Nigeria under his watch is hastily returning to borrowing ways.
According to three different letters despatched to the National Assembly, the President is asking for the greenlight to increase Nigeria’s debt burden.
Tinubu is seeking permission to embark on three kinds of borrowing, ostensibly to finance critical government projects.
If the plea for understanding receives the nod of parliament, the Nigerian people pauperised by the removal of petroleum subsidy and a high inflationary rate will watch from the sidelines as government implements three borrowing plans.
The three kinds of borrowing conceived by the APC administration that is seeking a second tenure from the Nigerian public are capital grazing funds, the FGN 2025-2026 external borrowing plan, and the request for the issuance of a home-based bond that will exclusively fund retirees’ pensions through what is known as the Contributory Pension scheme.
The letters read on the floor of the Senate and the House of Representatives are requesting approval to borrow the sum of $2 billion as capital grazing funds, $21,543,647,912, 2,193,856,324.50 Euro, 15 billion Japanese yen, a grant of 65 million Euro and N757,983,246,571.
“The House of Representatives is invited to note that 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”, one of the letters read.
It further explained, “The total facility of the programme under the borrowing plan is $21,543,647,912, and also EURO 2,193,856,324.54, in Japanese Yen, 15 billion Yen and grant of 65 million Euro, respectively.
“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 Nigerian. Majority of these projects and programmes will be implemented across all 36 states and the Federal Capital Territory (FCT).
“In light of the significant infrastructure deficit in the country and the power 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.
“These funds will primarily be directed towards critical infrastructural projects, including railways, healthcare, among others. Given the market nature of these needs and the importance of stabilising the economy, it is crucial to seek the consideration and approval of the House of Representatives for the 2025-2026 External Borrowing Plan.
“This will enable the government to fulfill its obligations to the Nigerian people through timely disbursement and effective project implementation.”
Turning attention to the government’s quest to float an instrument designed to take care of retiree interests, the letter written by the President said, “The Federal Government is requesting the approval of the National Assembly for the issuance of Federal Government of Nigeria bonds in the domestic market by the Debt Management Office (DMO) to settle outstanding pension liabilities under the Contributory Pension Scheme.
“I write to request for the kind approval of the National Assembly for the issuance of Federal Government of Nigeria bonds in the domestic market by the Debt Management Office to settle outstanding pension liabilities under the Contributory Pension Scheme as of February 2023 in the sum of N757,983,246,572…”