By Anifowoshe Oladipupo
The Federal Government has reassured Nigerians that President Bola Ahmed Tinubu’s $21.5 billion external borrowing plan will not lead to an unsustainable debt burden.
Speaking on behalf of the administration, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized that the loans are linked to critical infrastructure and development projects aimed at driving long-term economic growth.
Edun explained that the borrowing forms part of a broader economic strategy to reposition Nigeria’s economy and attract foreign investment.
He stated that the funds will be directed towards key sectors such as power, transport, education, and healthcare, with each project supported by a clear and sustainable repayment plan.
“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 said.
Meanwhile, the Minister of Budget and Economic Planning, Atiku Bagudu, expressed confidence that the loans will generate strong economic returns.
He highlighted ongoing reforms, particularly in tax and revenue collection, which will strengthen Nigeria’s capacity to meet its debt obligations.
The government also assured that Nigeria’s debt-to-GDP ratio remains within acceptable global limits, and that measures to increase revenue and reduce wasteful spending are already in progress.
