The Nigerian government has clarified that the newly proposed $21.5 billion in foreign loans will not automatically raise the country’s debt burden, as the funds are to be sourced from development partners and disbursed gradually over time.
In a statement issued by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, it was explained that the loan request is part of a rolling borrowing plan and not an immediate debt increase. The statement comes in response to public concerns over media reports suggesting the loans could raise Nigeria’s total debt to N183 trillion, sparking fears about debt sustainability.
President Bola Tinubu has asked the National Assembly to approve over $21.5 billion in external loans for the 2025–2026 borrowing plan, along with an additional 2.2 billion euros ($2.5 billion), 15 billion yen ($103.97 million), and $2 billion in local borrowings. These loans represent about 60% of the projected 2025 budget spending and align with Tinubu’s strategy to drive economic growth and attract foreign investments.
According to Manga, the actual debts incurred each year are outlined in the national budget, and the proposed loans will fund key projects across several states, including Lagos, Kaduna, Borno, and Oyo. These projects span sectors such as electricity, food security, digital infrastructure, security, and transportation.
Most of the borrowing will come from international development institutions like the World Bank, African Development Bank, and China EximBank, which offer long-term, low-interest financing. These loans are seen as a sustainable way to support Nigeria’s economic development.
Tinubu’s government is pushing infrastructure growth to stimulate the economy after controversial reforms like fuel subsidy removal and currency devaluation. While these changes have triggered a cost-of-living crisis, they’ve also set the stage for faster GDP growth and a more investment-friendly environment.
