On May 29, 2025, the Nigerian Presidency and Ministry of Finance addressed public concerns regarding President Bola Tinubu’s recent request to the National Assembly for approval of a $20 billion external borrowing plan. They emphasized that this proposal is part of a comprehensive two-year framework (2025–2026) encompassing both federal and state government projects, rather than an immediate borrowing initiative.
The Ministry clarified that the actual borrowing for each year is detailed in the annual budget, with the 2025 budget’s external borrowing component, valued at $1.23 billion, yet to be accessed. The rolling plan includes projected loans for various states, such as Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe, and is structured to fund projects in phases over five to seven years, depending on project timelines.
Key sectors targeted by this borrowing plan include national power grid enhancements, irrigation schemes to bolster food security, the development of a nationwide fibre optic backbone, acquisition of fighter jets for national security, and major rail and road infrastructure projects. The financing for these initiatives is expected to come from Nigeria’s development partners, including the World Bank, African Development Bank (AfDB), French Development Agency (AFD), European Investment Bank (EIB), Japan International Cooperation Agency (JICA), China EximBank, and the Islamic Development Bank (IsDB), offering concessional loans with favorable terms and long repayment periods.
Special Assistant to the President on Social Media, Dada Olusegun, highlighted that the Medium-Term Expenditure Framework (MTEF) serves as a guide for budget execution over the specified period. He also noted that state governments require federal backing to access international funding, ensuring that all external borrowing aligns with national fiscal strategies and receives Senate approval.
This strategic approach aims to address Nigeria’s infrastructural deficits and stimulate economic growth through carefully planned and executed development projects.
