The federal government has assured Nigerians that President Bola Ahmed Tinubu’s $21.5 billion external borrowing request will not result in an unsustainable debt burden.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasised that the loans were tied to critical infrastructure and development projects designed to stimulate long-term economic growth.
According to Edun, the borrowing plan was part of a broader economic strategy to reposition the Nigerian economy and attract foreign investment.
He noted that the funds would be deployed in key sectors, including power, transport, education, and healthcare, and that each project was backed by a clear and sustainable repayment framework.
“The Tinubu administration is focused on responsible fiscal management. This borrowing plan is a proactive step towards economic recovery, not a reckless accumulation of debt,” Edun stated.
Minister of Budget and Economic Planning, Atiku Bagudu, said the government was confident that the loans would yield high economic returns, adding that ongoing reforms—especially in tax and revenue collection—would enhance the country’s ability to meet its debt obligations.
The government further said that Nigeria’s debt-to-GDP ratio remained within acceptable global benchmarks, and that efforts to boost revenue and cut wasteful spending were already underway.
