The Federal Government has clarified that its proposed $24 billion borrowing does not equate to an automatic increase in the nation’s debt profile.
The Director of Information and Public Relations at the Federal Ministry of Finance, Mohammed Manga, explained that the rolling plan spreads borrowings across different projects over time. He noted that the majority of initiatives outlined in the 2024–2026 rolling plan involve multi-year drawdowns, typically spanning five to seven years, and are tied directly to specific projects.
Mohammed Manga explained that the projects span across key sectors of the economy, such as power grids and transmission lines, irrigation to boost food security, a nationwide fibre optics network, fighter jets for security, as well as rail and road infrastructure.
He also noted that the majority of the proposed funding will come from Nigeria’s development partners, including the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China Eximbank, and the Islamic Development Bank.
The government indicated that the proposed loans come from institutions offering concessional financing with favourable terms and extended repayment periods, aligning with Nigeria’s sustainable development goals. The borrowing plan will support both federal and state-level projects across various geopolitical zones, including states like Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe.
According to him, “The borrowing plan does not equate to actual borrowing for the period. The actual borrowing for each year is contained in the yearly budget. In 2025, the external borrowing component is $1.23 billion, and it has not yet been drawn. This is planned for H2 2025.”
The government reaffirmed the country’s rising debt profile, noting that the debt service-to-revenue ratio is already declining from its peak of over 90 percent in 2023.
It stated: “The government has ended the distortionary and inflationary ways and means. There are significant revenue expectations from the Nigerian National Petroleum Corporation (NNPC), and technology-enabled monitoring and collection of surpluses from Government-Owned Enterprises and revenue-generating ministries, departments, and agencies, including legacy outstanding dues.”
It added: “These investments will lay the groundwork for long-term economic diversification and encourage private sector participation. Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing. Ensuring that all borrowed funds are efficiently utilised and directed toward growth-enhancing projects remains a top priority.”
The government reaffirmed its commitment to maintaining borrowing within sustainable and manageable levels, in line with the Debt Management Office’s (DMO) Debt Sustainability Framework. It also highlighted that ongoing tax reforms and other revenue-boosting initiatives are expected to enhance revenue generation and promote prudent financial management.
It said,“We reaffirm our dedication to fiscal discipline, transparency, and accountability. Constructive public engagement and legislative oversight are vital components of our journey toward long-term economic stability and inclusive national prosperity,” it said.
The government noted that the proposed Borrowing Rolling Plan is a key part of the Medium-Term Expenditure Framework (MTEF), in accordance with the Fiscal Responsibility Act 2007 and the DMO Act 2003.
