President Bola Tinubu has requested the National Assembly’s approval for Nigeria’s 2024–2026 External Borrowing Rolling Plan, a strategic financing framework aimed at driving critical infrastructure and economic growth across the country.
In a statement released Wednesday by the Director of Information and Public Relations at the Ministry of Finance,Mohammed Manga, the government assured of fiscal prudence and project tied loans.
The statement noted that the borrowing plan is a key component of the Medium-Term Expenditure Framework, MTEF, aligned with the Fiscal Responsibility Act 2007 and the Debt Management Office, DMO, Act 2003.
Designed as a forward-looking financial blueprint, the rolling plan outlines proposed borrowings for both federal and state governments over a three-year period.
It comes with five appendices detailing projects, loan terms, implementation timelines, and more, all aimed at replacing ad hoc borrowing with structured, strategic planning.
Manga clarified that the approval of the plan does not mean immediate or automatic borrowing. Instead, actual borrowing is determined within the annual budgets. For instance, Nigeria’s 2025 budget includes a proposed external borrowing of $1.23 billion, which is expected to be accessed in the second half of that year.
States listed to benefit under the plan include Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe, with projects spanning critical sectors such as energy, transport, agriculture, security, and digital infrastructure.
“These are not blanket loans. Many are project-tied loans with drawdowns staggered over 5–7 years, ensuring long-term funding for transformative projects such as power grid upgrades, irrigation systems, fibre optic networks, fighter jets procurement, and national rail and road infrastructure,” the statement said.
Most of the funding will come from international development partners offering concessional financing with favorable terms and extended repayment periods.
These partners include 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.
The Federal Government also reassured the public that Nigeria’s debt service-to-revenue ratio, which exceeded 90 per cent in 2023 is now declining.
According to the government, the improvement follows the cessation of inflationary “ways and means” financing, alongside enhanced revenue collection efforts through the Nigerian National Petroleum Corporation, NNPC, and digitized monitoring of Government-Owned Enterprises, GOEs.
With macroeconomic stability gradually returning, the Tinubu administration says it is focused on repositioning the economy for inclusive, long-term growth. Central to this vision are investments in energy, transportation, agriculture, and other infrastructure that will boost productivity and attract private sector investment.
“Our debt strategy is not just about borrowing. It is about using debt as a tool for economic transformation — ensuring that all funds are tied to high-impact, growth-enabling projects,” the statement noted.
The government also reaffirmed its commitment to fiscal discipline, transparency, and compliance with the DMO’s Debt Sustainability Framework.
“Public engagement and legislative oversight are key pillars of this strategy,” the Finance Ministry added, pledging continued accountability as Nigeria pursues sustainable development and shared national prosperity.
