Nigerian Government Defends $21.7 Billion Loan Plan

The Nigerian federal government, represented by Finance Minister Taiwo Oyedele, defended its proposed $21.7 billion external borrowing plan during a Federal Executive Council meeting presided over by President Bola Tinubu in Abuja. Oyedele asserted that the funds are intended for productive investments in infrastructure and critical sectors, rather than merely increasing the national debt.

He clarified that the proposal is a financing plan and does not indicate that the government has already borrowed the funds or will utilize the entire amount. The financing includes $20.52 billion and €1.045 billion for projects in transportation, security, healthcare, agriculture, energy, digital infrastructure, education, and social protection.

Key transportation projects include the Sokoto-Badagry and Lagos-Calabar highways and the Kano-Kaduna rail project. The government aims to secure about $7.9 billion from multilateral and bilateral partners, with the World Bank providing a significant component of $5 billion at concessional rates.

Oyedele also mentioned the goal of achieving single-digit inflation by the end of 2027.