Finance Ministry Reacts As Tinubu Seeks Approval To Borrow Additional $21.5bn

The Ministry of Finance has provided its perspective on President Bola Tinubu’s request for borrowing $21.5 billion.

On Tuesday, May 27, 2025, President Tinubu submitted a letter to the national assembly seeking approval for a new external borrowing initiative amounting to over $21.5 billion.

Additionally, President Tinubu requested the lawmakers’ authorization to issue federal government bonds valued at N757.9 billion to address outstanding pension obligations under the contributory pension scheme (CPS).

In a statement released on Tuesday by its Director of Information and Public Relations, Mohammed Manga, the Ministry of Finance indicated that the borrowing proposal is a crucial element of the 2024–2026 External Borrowing Rolling Plan, which delineates the financing requirements of both federal and sub-national governments over a two-year period.

The Ministry underscored that the borrowing framework does not equate to immediate or indiscriminate debt accumulation. Instead, it serves as a strategic, forward-thinking instrument aimed at promoting effective financial planning and ensuring coherence with Nigeria’s Medium-Term Expenditure Framework (MTEF), in compliance with the Fiscal Responsibility Act of 2007 and the DMO Act of 2003.

“The Debt Rolling Plan is not an automatic green light for increasing the debt burden. It is a strategic framework that guides sustainable and purposeful borrowing,” the statement reads.

“This strategic method enhances Nigeria’s ability to implement effective fiscal policies and mobilize development resources.

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“Importantly, it should be noted that the debt rolling plan does not equate to an automatic increase in the nation’s debt burden.”

Manga further disclosed that most of the funds will be sourced from concessional lenders and development partners such as the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China Eximbank, and the Islamic Development Bank.

“These institutions provide concessional financing with favorable terms and long repayment periods, which aligns with the country’s development needs,” the statement added.

According to Manga, the plan is designed to support critical investments in infrastructure, transportation, energy, and agriculture — “sectors central to achieving rapid, inclusive, and sustained economic growth”.

“Our borrowing strategy is guided not by the volume of loans but by their utility, sustainability, and the economic value they generate. Each facility will be strictly tied to growth-enhancing projects,” the ministry said.