The ministry of finance has provided clarification on President Bola Tinubu’s $21.5 billion borrowing request, saying it would not lead to an “automatic” debt increase.
On May 27, Tinubu wrote to the national assembly requesting
approval for a new external borrowing plan totalling over $21.5 billion.
The president also sought the lawmakers’ green light to
issue federal government bonds worth N757.9 billion to settle outstanding
pension liabilities under the contributory pension scheme (CPS).
Speaking in a statement on Tuesday, Mohammed Manga, director
of information and public relations at the ministry of finance, said the request
aims to introduce a forward-looking and structured approach to debt management,
replacing the inefficiencies of reactive borrowing.
“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,” the statement reads.
“This strategic method enhances Nigeria’s ability to
implement effective fiscal policies and mobilize development resources.
“Importantly, it should be noted that the debt rolling plan
does not equate to an automatic increase in the nation’s debt burden.”
According to the ministry, most of the proposed loans will
be sourced from development partners such as the World Bank, African
Development Bank, China EximBank, JICA, the French Development Agency, European
Investment Bank, and the Islamic Development Bank.
“These institutions provide concessional financing with
favorable terms and long repayment periods, which aligns with the country’s
development needs,” the statement added.
Manga said the plan is designed to support critical
investments in infrastructure, transportation, energy, and agriculture —
“sectors central to achieving rapid, inclusive, and sustained economic growth”.
“Our borrowing strategy is guided not by the volume of loans
but by their utility, sustainability, and the economic value they generate.
Each facility will be strictly tied to growth-enhancing projects,” the ministry
said.
The ministry also reiterated its commitment to maintaining
borrowing within sustainable limits, bolstered by ongoing tax reforms and
efforts to boost domestic revenue.
“We are committed to fiscal discipline, transparency, and
accountability. Legislative oversight and public engagement are key to building
long-term economic stability and inclusive national prosperity,” the statement
added.
Manga also said the ongoing tax reform agenda and other
revenue initiatives will further improve revenue generation and financial
management.
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