Nigeria's Government Defends $21.7 Billion Investment Plan

The Federal Government of Nigeria, represented by Finance Minister Taiwo Oyedele, defended its proposed $21.7 billion external borrowing plan during a press briefing following a Federal Executive Council meeting led by President Bola Tinubu. The Minister stated that the loans are intended to finance productive investments that will stimulate economic growth and improve citizens' living standards.

Oyedele responded to criticisms from Alhaji Atiku Abubakar of the African Democratic Congress and Mr Peter Obi of the Nigerian Democratic Congress, asserting that the borrowing should be viewed as investment rather than an increase in debt. The proposed financing includes $20.52 billion and €1.045 billion for various sectors, including transportation, healthcare, and education.

The government aims to secure approximately $7.9 billion from multilateral and bilateral partners, with the World Bank expected to contribute $5 billion at a concessional interest rate of about 2.1 percent. The government is targeting single-digit inflation by the end of 2027.