The Federal Government has moved to allay concerns over President Bola Tinubu’s $21.5 billion external borrowing request, describing it as a strategic financial planning tool rather than an immediate debt accumulation.
The clarification comes after Tinubu formally sought National Assembly approval for the loan package on Tuesday, which includes a N757.9 billion bond issuance to settle outstanding pension liabilities.
Finance Ministry spokesman Mohammed Manga explained in a statement that the request forms part of the carefully structured 2024-2026 External Borrowing Rolling Plan, developed to meet financing needs across federal and state governments while complying with fiscal responsibility laws.
“The Debt Rolling Plan is not an automatic green light for increasing the debt burden. It is a strategic framework that guides sustainable and purposeful borrowing,” Manga emphasized.
The Ministry stressed that funds would be sourced primarily from multilateral institutions like the World Bank and African Development Bank offering favorable concessional terms, with all borrowing strictly tied to growth-enhancing projects in critical sectors including infrastructure, transport, energy and agriculture.
“Our borrowing strategy is guided not by the volume of loans but by their utility, sustainability, and the economic value they generate,” the statement noted, assuring that this approach would support “rapid, inclusive, and sustained economic growth” without unduly increasing Nigeria’s debt profile. The government maintains the planned borrowing aligns with fiscal responsibility laws and represents a measured approach to development financing.
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