Tinubu’s $21.5 Billion Request: The Federal Ministry of Finance has clarified that President Bola Tinubu’s recent \$21.5 billion external borrowing request does not automatically translate into an increase in Nigeria’s debt burden.
On May 27, President Tinubu submitted a request to the National Assembly seeking approval for a \$21.5 billion borrowing plan, along with a proposal to issue federal government bonds totaling N757.9 billion to settle outstanding pension liabilities under the Contributory Pension Scheme (CPS).
In a statement issued on Tuesday, May 27, Mohammed Manga, Director of Information and Public Relations at the ministry, explained that the proposal forms part of a broader Debt Rolling Plan aimed at providing structure and long-term strategy to Nigeria’s borrowing practices. He emphasized that this approach marks a shift from past reactive borrowing methods and supports fiscal sustainability.
“The Debt Rolling Plan does not automatically increase the debt load. It serves as a strategic guide for borrowing in a responsible and targeted manner,” the statement noted.
The ministry pointed out that most of the proposed loans will come from development partners such as the World Bank, African Development Bank, China EximBank, Japan International Cooperation Agency (JICA), the French Development Agency, European Investment Bank, and the Islamic Development Bank. These partners typically offer concessional loans with favorable conditions and extended repayment terms.
According to the ministry, the funds will be allocated to critical sectors like infrastructure, transportation, energy, and agriculture—areas considered vital for achieving inclusive and long-term economic growth.
Still on Tinubu’s $21.5 Billion Request
“Our approach to borrowing is driven by the impact and sustainability of each loan, not merely the size. Every loan facility will be strictly linked to projects that enhance economic development,” the ministry stated.
It also reaffirmed the government’s commitment to keeping debt within sustainable thresholds, citing ongoing tax reforms and efforts to enhance domestic revenue as key strategies for improving financial resilience.
“We remain committed to fiscal responsibility, transparency, and accountability. Legislative oversight and public participation are central to achieving lasting economic stability and national prosperity,” the ministry concluded.
Manga further noted that the administration’s tax and revenue reform initiatives are expected to significantly strengthen financial management and gradually reduce dependence on external borrowing.
