By Zainab Rauf, Abuja The Federal Government has clarified the purpose and implications of its proposed 2024–2026 External Borro...
By Zainab Rauf, Abuja
The Federal Government has clarified the purpose and implications of its proposed 2024–2026 External Borrowing Rolling Plan, assuring Nigerians that the strategy is development-driven, responsibly structured, and does not represent an automatic increase in the country’s debt burden.
In a press statement signed by Mohammed Manga, Director of Information and Public Relations, the government explained that President Bola Ahmed Tinubu had on May 27, 2025, formally requested National Assembly approval for the rolling plan, which forms part of the Medium-Term Expenditure Framework (MTEF) and is in line with the Fiscal Responsibility Act 2007 and the Debt Management Office (DMO) Act 2003.
“This strategic method enhances Nigeria’s ability to implement effective fiscal policies and mobilize development resources,” the statement read.
According to the government, the plan outlines a framework for external borrowing over a three-year period for both federal and sub-national entities. It is accompanied by detailed appendices covering projects, implementation timelines, and lending terms. However, the plan itself does not represent actual borrowing, as yearly disbursements are tied to provisions in the national budget.
For 2025, the external borrowing figure is pegged at $1.23 billion, but the funds have not yet been drawn and are expected to be accessed in the second half of the year. The borrowing will support states including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe.
Highlighting the structure of the plan, the government noted that “a large proportion of projects in the 2024–2026 rolling plan have multi-year drawdowns of between 5–7 years,” emphasizing that the funds will finance critical sectors such as energy, transport, agriculture, telecommunications, and national security.
Projects listed include power grid upgrades, irrigation infrastructure, broadband expansion, fighter jets, and railway and road development.
The statement further revealed that most of the loans would come from concessional sources like the World Bank, African Development Bank, China EximBank, JICA, Islamic Development Bank, and other development partners, all offering favorable terms and extended repayment periods.
On the issue of Nigeria’s debt profile, the government assured that the debt service-to-revenue ratio, which had exceeded 90% in 2023, is now on a downward trend, thanks to improved fiscal discipline, increased revenue expectations from the Nigerian National Petroleum Corporation (NNPC), and technology-driven reforms in revenue collection.
“Our debt strategy is guided not solely by the size of our obligations but by the utility, sustainability, and economic returns of the borrowing,” the statement said. “Ensuring that all borrowed funds are efficiently utilized and directed toward growth-enhancing projects remains a top priority.”
The government reiterated its commitment to fiscal transparency, accountability, and staying within borrowing limits defined by the DMO Debt Sustainability Framework. It also reaffirmed its pledge to engage the public constructively and welcome legislative oversight as part of the effort to achieve long-term economic stability and national prosperity.
No comments