FG Clarifies Tinubu’s $21.5 Billion Loan Request
The Federal Ministry of Finance has responded to public concerns over President Bola Tinubu’s recent $21.5 billion external borrowing request, assuring Nigerians that the move will not automatically increase the nation’s debt profile.
On Monday, President Tinubu formally requested the National Assembly’s approval for a new external borrowing plan amounting to $21.5 billion, alongside a proposal to issue N757.9 billion in federal government bonds. These bonds aim to clear outstanding pension liabilities under the Contributory Pension Scheme (CPS).
In a statement issued Tuesday, Mohammed Manga, Director of Information and Public Relations at the finance ministry, emphasised that the request forms part of a “Debt Rolling Plan” — a structured, forward-looking approach to managing the country’s finances more sustainably.
“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 stated.
He explained that this framework is designed to replace past reactive borrowing practices with a more disciplined and growth-oriented fiscal strategy. According to the ministry, the loans will predominantly come from development-focused institutions like 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 favourable terms and long repayment periods, which aligns with the country’s development needs,” the statement read.
The proposed borrowing plan is targeted at financing key infrastructure projects across transportation, energy, and agriculture sectors Manga described as essential for “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,” the statement continued. “Each facility will be strictly tied to growth-enhancing projects.”
The ministry also reiterated its commitment to fiscal responsibility, noting that Nigeria’s debt decisions are being guided by ongoing tax reforms and efforts to expand domestic revenue streams.
“We are committed to fiscal discipline, transparency, and accountability,” Manga affirmed. “Legislative oversight and public engagement are key to building longterm economic stability and inclusive national prosperity.”
