.As Senate moves to overhaul MOFI Act
CHIGOZIE AMADI
President Bola Tinubu has sought the approval of the National Assembly for the 2025-2026 external borrowing plan of 21.5billion dollars.
The president also sought the approval of the Senate and House of Representatives for a loan request of 15 billion Japanese Yen and 51 million Euros grant.
The News Agency of Nigeria (NAN) reports that Tinubu’s request is contained in separate letters addressed to Senate President, Godswill Akpabio and Speaker House of Representatives, Tajudeen Abbas read at plenary on Tuesday.
Tinubu in the letters, said ”following the removal of the first fuel subsidy and its impact on the national economy, approval is sought for the external building plan.
“I want to emphasise that the projects and programmes included in the plan were selected based on technical and economic evaluations and the anticipated contributions to the socio-economic development of the country”.
He explained that the initiatives were aimed at generating employment, promote skill acquisition, foster entrepreneurship, reduce poverty and enhance food security.
According to him, this will improve the livelihoods of the average Nigerian.
The President added that majority of the projects and programmes would be implemented across the 36 states of the country.
He noted that amid declining domestic funding, it had become essential to pursue prudent external borrowing, saying that a vast financial resource was needed to address the infrastructure gap across the country.
“These funds will primarily be directed towards critical infrastructure projects including sectors in power, railways healthcare among others.
”Given the urgent nature of business and the importance of stabilising the economy, it is therefore crucial to seek approval of the distinguished senate for the 2025-2026 external borrowing plan.
“This will enable the government to fulfill its obligations to the Nigerian people through timely and effective project implementation,” he said.
Akpabio thereafter refereed the request to Senate Committee on Local and Foreign Debts for further legislative inputs and to revert to plenary within two weeks.
Meanwhile, President Tinubu has also written to the House of Representatives, requesting legislative approval for a new external borrowing plan amounting to over $21.5 billion, alongside a domestic bond issuance of ₦757.9 billion to settle outstanding pension liabilities.
In a detailed communication to the Green Chamber, President Tinubu highlighted the strategic significance of the 2025–2026 borrowing plan, noting that it spans key sectors of the economy.
“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 President stated.
According to Tinubu, the total facility sought under the external borrowing plan includes USD 21,543,647,912, EUR 2,193,856,324.54, and 15 billion Japanese Yen, in addition to a grant of 65 million EUR.
He noted that the proposed borrowing is crucial in light of the removal of fuel subsidy and its economic implications.
“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,” the President wrote.
Tinubu assured lawmakers that the proposed funds would be channelled into critical infrastructure projects, especially in the areas of railways, healthcare, and nationwide development programmes across all 36 states and the Federal Capital Territory.
“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,” he emphasised.
On a separate note, President Tinubu also sought the House’s approval for the issuance of Federal Government bonds in the domestic market to settle accrued pension liabilities under the Contributory Pension Scheme (CPS) amounting to ₦757,983,246,572.
Citing the Pension Reform Act 2014, Tinubu noted that the government had been unable to comply with some statutory pension obligations due to revenue challenges, leading to a buildup of arrears and increasing hardship for retirees.
“The House of Representatives is invited to note that the federal government has not been compliant with the implementation of the above provisions of the PRA 2014 over the years due to revenue challenges leading to accumulation of pension arrears with the attendant ICU retirees,” he stated.
He added that the proposal to issue bonds for the settlement of the liabilities had received approval from the Federal Executive Council in its meeting of February 4, 2025.
According to the President, settling the pension arrears will improve retirees’ welfare, boost confidence in the pension system, and inject liquidity into the economy.
“It will enable the Federal Government of Nigeria to meet obligations under the CPS and restore confidence in the pension industry. “It will also ensure positive welfare even for the retirees, as this will enable them to meet their basic needs… improve health and avoid untimely death,” the letter stated.
Tinubu concluded by appealing to lawmakers for timely approval, assuring them of his administration’s commitment to transparency and accountability.
“While I look forward to the progression and timely approval of the House of Representatives, please accept, Your Honourable Speaker, the assurances of my high regards,” he wrote.
The request has been referred to the House Committee on National Planning and Economic Development and the Committee on Pensions for further legislative action.
.as Senate moves to overhaul outdated MOFI Act
However, The Senate Tuesday took a significant step toward reforming the management of Nigeria’s public assets by introducing the Ministry of Finance Incorporated (Repeal & Re-enactment) Bill, 2025 .
The bill sponsored by Senator Sani Musa ( APC Niger East) and given first reading in plenary on Tuesday , seeks to repeal and comprehensively update the existing MOFI Act, which was first enacted in 1959.
The proposed legislation aims to modernize the legal framework governing MOFI, repositioning it as a dynamic, commercially-oriented institution responsible for managing and optimizing government investments.
Key provisions in the bill address the need for strengthened governance structures, improved transparency, and alignment with international best practices in sovereign asset management.
This holistic reform is expected to enhance the performance and value of government-owned enterprises and investments, driving greater economic returns and supporting the country’s broader development objectives.
The Senate’s move underscores a renewed national focus on fiscal responsibility, institutional efficiency, and sustainable economic growth.
